The Finance Process - DO NOT DELETE
The Finance Process
All of us at Chrysler Dodge Jeep Ram at Franklin understand it’s sometimes confusing when it comes time to finance a new vehicle. Fortunately, our financing experts will give you plenty of options that’ll fit your needs, regardless of your past credit history.
Securing a line of credit is a painless and quick process. Needless to say, there’s a variety of factors involved, but on the whole, everything comes down to four basic steps. The rates we offer you are based on these three items:
- Type of Vehicle: The year, model and cost of your vehicle you’re purchasing, in addition to whether you’re chosen vehicle is new or certified pre-owned, have an impact on your rate.
- Personal Financial History: Naturally, your rate is partially based, on your credit history, income, and employment status.
- Credit History: The information contained in your credit history.
- Down Payment: Rates and approval chances are determined by how much you place for your down payment. A larger down payment may result in lowered rates and/or improved terms.
Part of the application processinvolves our financing specialists assisting you with gathering the required information. In case you feel uncomfortable giving up this type of information to one of us at Chrysler Dodge Jeep Ram at Franklin, we have a secure online application set up that guarantees your privacy.
Three Factors which Will Affect Your Monthly Payment
There are three critical factors that affect how much you’ll pay per month:
- Loan amount
- Length of your loan
- Your annual percentage rate, or APR
How Your Payments are Affected
| Total Amount Financed | Number of Months Financed | Annual Percentage Rate | Monthly Payment | Details |
|---|---|---|---|---|
| $17,500 | 60 months | 10.00 | $372 | Standard financing |
| $15,500 | 60 months | 10.00 | $335 | Reducing 10% of the financed amount equates to 10% less in payments |
| $17,500 | 66 months | 10.00 | $346 | Increasing length of loan by 10% equates to a 7% reduction in monthly payment |
| $17,500 | 60 months | 9.00 | $363 | A 10% reduction in interest equates to a 3% payment reduction |
Your credit score is a number that provides potential lenders with how much potential financial risk they see you as. It’s helpful to have a higher score when it comes to making major purchases such as houses or cars.
- By the Numbers: Credit scores vary anywhere from 350 to 850
- Risk Assessment: In general, lenders view you as being less risky
Your credit score only tells part of the story. Your credit history is typically used by reporting agencies that determine your actual score. Here’s a few factors:
- Number of timely and late payments
- Type of debt and amount
- Number of open accounts and their age
- Amount of hard credit inquiries in your credit history
- Current judgements and liens
The 3 Main Credit Reporting Agencies
- Experian:
Web:www.experian.com
Toll-free number: (888) 397-3742 - Equifax:
Web: www.equifax.com
Toll-free number: (800) 685-1111 - TransUnion:
Web: www.transunion.com
Toll-free number: (877) 322-8228
These are among the most commonly used terms by Franklin Chrysler Dodge Jeep Ram in car financing:
- Amount Financed: The total loan amount.
- APR: Also known as the Annual Percentage Rate or the amount of interest you are paying per year.
- Down Payment: The amount of cash and/or the value of your trade in.
- Equity: The difference between how much you owe on your trade in and its actual value expressed as a positive or negative number.
- Finance Charge: How much you will be paying for your loan.
- Retail Installment Contract: The loan agreement between you and the lender which states your monthly payment, the number of payments, and the interest rate you will be paying.
- Simple Interest: The charges for your financing, this is a calculation including the unpaid principal of the loan, how many days there are between each payment, and your annual percentage rate.
- Stipulation: This is any extra documentation or any further actions which will be required in order to complete your loan transaction. A good example of this would be your paystubs or other proof of income.
- Term: This is the total number of months your loan is expected to run.
- Total of Payments: This is the sum total of all payments made once you have completed the terms of the loan.
- Total Sales Price: This is the full cost of your new vehicle, it includes the amount you financed, your down payment, and the finance charges.
- Gross Monthly Income: Also known as GMI or the total amount of money you receive each month before taxes, social security, FICA and contributions to retirement plans are deducted.