How to Finance a Car

Just like choosing your car and scheduling a test drive, financing your vehicle is an important step in the car-buying journey.

Luckily, we here at Ira Subaru are always ready to help! With our expert staff and slew of online tools, we make financing a breeze.

In the sections below, we'll go over the steps of how to finance a car, giving drivers in Wakefield, Reading, and Danvers the tools they need to secure their dream car. Keep reading to discover more about car financing.

Step 1: Calculate Your Budget and Down Payment

The first step in financing a new car is to set your budget. This way, you have an idea of workable monthly payments. Remember to include all possible car expenses into your budget, including registration fees, car insurance, and even gas costs.

We encourage you to try out the payment calculator available on our website. This tool is a great place to begin, as it can provide an estimate of your monthly payments.

After your budget is set, start deciding how much you'd like to put toward a down payment. A good rule of thumb is to offer a down payment around 20 percent of the car's total value.

Step 2: Look into Your Credit History and Choose an Auto Loan

Understanding your credit score is a central aspect of vehicle financing. If you're not sure of your credit situation, there are many free tools and websites that can help you determine your credit score. 

If you discover that your credit score isn't as high as you'd like, there are many things you can do to raise it up a few notches. In fact, acquiring a car loan is one possible way to give your score a boost. Loans that are paid in a timely manner are likely to increase your credit.

How Long of a Loan Should You Get?

That brings us to our next stop on the financing journey: auto loans. The most common duration for an auto loan is 72 months; however, lenders do offer 60-month and 84-month loans as well. Long-term car loans typically bring in lower monthly payments, while short-term loans provide lower interest rates. So, you'll want to consider those two factors when deciding on a loan term length.

Step 3: Visit Our Finance Center

You've set a budget, determined your down payment, and looked into your credit history. Now it's time to head on over to our finance center to finalize all the details.

Here, expert personnel will guide you through the entire process, helping you develop a payment plan that best fits your needs and lifestyle. Plus, our collaboration with local lenders can help secure an ideal auto loan for your budget.

Additionally, our website offers various financing tools to get the ball rolling beforehand:

• Value Your Trade: If you're looking to trade in your current vehicle, this tool will show you its estimated value.
• Apply for a car loan: Fill out this quick and secure form to get pre-approved prior to your visit.

Of course, we always love meeting our customers in person, so once you're ready, stop on by our finance center and we'll get things started.

Visit Our Finance Department Today

If you're in the Wakefield, Reading, or Danvers area and ready to begin the financing process, then stop on into the finance center here at Ira Subaru.

We look forward to working with you soon!