We realize that our customers usually count on us as the dealership to get financing for them. So, we work with many different credit unions, banks, and other financial entities to get the best rates and terms we can for our customers. The dealership is not the determining entity for your terms; that is the responsibility of the lender. They just offer several different options that are available to you so you can work it out in your budget.
Several factors come into play when financing is considered. The average client believes their credit score is the single most important factor in establishing financing rates, but that is not completely accurate. Lenders review several factors that influence your credit score. For example, factors include the length of the financing term, down payment, income, job time, previous auto loan history, time at residence, debt-to-income ratio, auto loans still being paid, and so on. You are welcome to come in and discuss factors such as these with us.
In short, yes. There are customers who choose to get their own financing from a lender they prefer prior to the purchase. It makes little difference to us how you get your financing; we are a commission-free lending institution. At times, however, we can negotiate better terms for you by virtue of having access to lenders that are not accessible by the public because they only work with dealerships. If we can get the loan for you, the lender may want to call you to verify the agreement terms.
The difference between the money you still owe on your current loan and the current value of your vehicle is called equity. Equity has two established characteristics, positive and negative. Negative equity means you owe more than your vehicle is worth, while positive equity means you owe less than the vehicle is worth.
If you have positive equity, it will go toward the dollar amount that is being financed, kind of like a down payment. If preferable to you, we can give you a check for the positive equity of your vehicle. However, that can only happen after the initial lender gets paid in full and the dealership gets the title. This process can take a month and a half or more. Now, if your equity is negative, that gets added to the loan for the new vehicle, which will increase your monthly payment unless it gets offset by a second down payment.
For more answers to your financing questions, contact Bob Moore Chrysler Dodge Jeep RAM of Tulsa or stop by our finance center located in Tulsa, OK, near Broken Arrow and Jenks.
