Welcome to Guaranteed Auto! Are you interested in financing a used car from us? Our Finance Manager, Steve Lymanstall, is an expert in all things auto financing and here to answer all your questions.
Our Ohio used car dealerships span four locations in Findlay, Van Wert, Celina, and Defiance, making us a trusted local source for great prices, competitive interest rates and reliable auto financing advice. We understand that financing a car can be a complex process, but our team of experts is here to help you every step of the way. Read on and let Steve answer your burning auto financing questions!
Frequently Asked QuestionsWith Our Finance Manager, Steve Lymanstall
01What are the current interest rates to buy a car?
Interest rates for auto loans are constantly changing due to various factors in the market. In recent times, we've seen an increase in auto loan interest rates. However, it's important to remember that the rates you qualify for will depend on your individual financial situation.
02How can I secure a good interest rate?
Securing a favorable interest rate is influenced by numerous factors, including your credit score, job and housing stability, down payment, age and mileage of the vehicle and your previous auto loan history. By improving these factors, you can increase your chances of obtaining a lower interest rate on your auto loan.
03How much of a down payment do I need to finance a car?
Although very few banks mandate a cash down payment for purchasing a car, making a substantial down payment can put you in an optimal car buying situation. A larger down payment can help lower your monthly payments and may improve your chances of qualifying for a lower interest rate.
04What additional costs will I be responsible for when buying a new car?
Typically, you will be responsible for any changes to your new or existing insurance policy and the registration of the vehicle. Depending on where you live and the state you're purchasing from, you may need to pay sales tax when registering the vehicle. Most of the time, this cost will be included in your financing or cash purchase.
05How can I determine the value of my trade-in?
The most accurate way to assess the value of your vehicle is to bring it to the dealership for a professional appraisal. However, there are online tools available that can provide a general idea of your vehicle's worth.
06Does my credit score impact my loan rate?
While your credit score is an important factor, it's just one of many aspects that banks consider when approving a loan. Other factors, such as your income and employment history, also play a role in determining your loan rate.
07I have a low credit score -- can I still finance a car?
Yes, having a low credit score doesn't necessarily mean you have bad credit. There are financing options available for individuals with lower credit scores.
08I don’t have a credit history yet -- can I still finance a car?
Absolutely! Many banks offer first-time buyer programs for those looking to establish credit. An auto loan can be one of the best ways to start building your credit history.
09What’s the best length for a car loan?
Short-term loans typically put you in the best equity position. However, they may not always be feasible for every budget. It's essential to select a loan term that aligns with your financial goals and circumstances.
10Can you offer a better interest rate than my pre-approved rate?
In many cases, we can match or even beat pre-approval rates. Banks, like car dealerships, are competing for your business, which means there may be opportunities to secure better rates.
11Can I reduce my monthly car payments down the road?
Yes, paying your loan on time and improving your credit score can often lead to better interest rates and loan terms in the future, which can help lower your monthly payments.
12Can I sell my car while I’m still paying it off?
Yes, you can sell or trade your car even if you still have a balance on it. If you have positive equity (it's worth more than you owe), you can use that towards a down payment on your next vehicle or take the cash difference. If you have negative equity (you owe more than it's worth), you can roll the deficient balance into your next loan or pay the difference out of pocket.
13Can I add a warranty when I buy a car?
In most situations, you can add a vehicle service contract to your purchase. However, some vehicles may be too old or have too many miles to qualify for an extended service contract.