Are Some Vehicles More Difficult to Finance? – What to Look for and Expect
For as long as I can remember, I’ve always loved just about anything with 4-wheels. Muscle cars, exotic imports, custom trucks, you name it I knew about it. On the day of my 18th birthday, I walked into my local Ford dealer and proclaimed I wanted a sports car. My demands were simple, I wanted a V8 and leather seats. Do you know what I left with that day? A Ford Taurus wagon with crank windows, manual door locks, and ugly hubcaps.
The car buying process can be confusing. Like many shoppers, I knew what I “wanted” to get, but I didn’t know what I was “able” to get.
What makes one easier over another?
Let’s look at a few things that make a difference:
- The age of a vehicle – Older vehicles often have more mechanical issues, banks know this and tend to avoid them. Anything more than 10 years old should be avoided if possible.
- Why mileage matters – High-mileage can signal upcoming mechanical issues. A vehicle with more than 120,000 miles will be much harder to get approved.
- Price VS payment – Falling for a Bentley isn’t very difficult – but paying for one sure is. Realistic expectations on what you get for your dollar will make the buying process a lot easier.
What can I do to improve my chances?
Many things can influence an auto loan, let’s take a look at a few of the most common:
- Down-payment – Lenders love to approve a well-structured loan. For the best chances at an approval, aim to have about 20% of the price of the vehicle as down-payment
- Length of employment – Strong employment history can signal to a lender that you’re a safe bet. One or more years at a single employer looks a lot better than a few months here or there.
- Multiple credit checks – Many shoppers allow several dealers to check their credit report. After too many inquiries, you can actually harm your chances of getting approved.
The Shannon Advantage
We operate a little differently here at Shannon Motors – we offer no-hassle financing options, free trade-in inspections, and include up to a 24 Month/24,000 Mile Limited Warranty* on every vehicle we sell. It’s no wonder that we’ve been awarded the New England Independent Auto Dealer Association Dealer of the Year award not once but twice.
We’ve learned a lot about selling cars over the last 40 years, and invite you to visit any of our 4 locations, in either Johnston, Providence, Woonsocket or Somerset.
*Whichever comes first. Exclusions apply