Tag Archives: auto loans

Auto Financing 101- John Amato Hyundai Milwaukee

When choosing auto financing the cutomer may have two options : direct lending or dealership financing

Direct Lending may offer you 

  • Comparisons- You have the chance to shop around and ask lenders directly about their terms before you agree to purchase a specific vehicle
  • Credit terms in advance – By getting financing before you purchase a vehicle, you will know your rate and terms when you start your shopping

Dealership Financing 

In dealership offered financing, you get your financing through the dealership where you are purchasing your vehicle.  You and a dealer will enter into a contract where you buy a vehicle and agree to pay the amount financed and the finance charge.  The dealer may in return the contract to the bank , finance company or credit union, that services the account and collects your payments.

Dealership financing may offer you:

  • Convenience- Dealers offer vehicles and financing in one location, and often have extended hours including evenings and weekends
  • Multiple financing options – The dealer’s relationships with multiple banks and finance companies may mean it can offer you a range of financing choices
  • Special Programs – Dealers sometimes offer manufacturer-sponsored, low-rate or incentive programs to buyers.  The programs may be limited to certain vehicles or may have special requirements, like a larger down payment or shorter contract length.  These programs might be only certain credit rating statuses.

Before you Buy or Lease a Vehicle.

Determine How Much you Can Afford

Before you finance or lease a vehicle, take a look at your current financial situation to make sure you have enough income to cover your monthly living expenses.  Then, if you want to finance a vehicle, know the total amount you will pay.  This will depend on several factors, including the price you negotiate for the vehicle, the Annual Percentage Rate (APR), which may be negotiable, and the length of the credit contract.

 

Finance or lease a vehicle only when you are able to take on a new obligation.  Check the overall cost of the purchase of lease.  Consider the monthly payment in finance or lease negotiations.

The only time to consider taking on additional debt is when you are spending less than you take home.  The additional debt load should not cut into any amount you have committed to saving for emergencies and other top priorities.  Saving for a down payment or trading in a vehicle can reduce the amount you need to finance and reduce your financing costs.  In some cases, your trade in vehicle will take care of the down payment ton your new vehicle.

If you owe more on your vehicle then its market value, you have negative equity in your vehicle.  This is a consideration if you plan to use your vehicle as a trade in. The longer your new credit contract, the longer it will be before you have positive equity in the new vehicle – that is, before it is worth more than you owe.  If you have negative equity, you may need a bigger down payment to try and cover some of the inequity in you current vehicle and to get a qualification loan call from a lender.  If you take all of the negative equity into your new loan, your monthly payments will increase.   If you have negative equity, consider paying down the debt before you purchase another vehicle.

When You Apply For Financing 

Most dealerships have a Fiance and Insurance (F&I) Department that will explain to you your fiancneing options.  The F&I Deparment mangaer will ask you to complete a credit application that will include :

  • Name
  • Social Security Number
  • Date of Birth
  • Current place of residence and length of stay
  • Current and previous places of employment and length
  • Occupation
  • Sources of Income
  • Total Gross Monthly Income
  • Current Debt Obligations

Most dealerships will get a copy of your credit report, which has information about your current and past credit obligations,  your payment record, and data from public records.  For each account, you credit report shows your account number, the type and terms of the accounts and the credit limit.  This also includes Credit limits, most recent payments and balances owed.  This also includes creditors summary of past due information, legal steps and and any collection obligations

The dealership will submit your application of credit to one or more potential lending institutions.  They will determine their willingness to buy your contract

The finance company will evaluate your credit application using automatic techniques, like credit scoring, where the factors like your credit history, length of employment, income and expenses may be weighed and scored

The potential lender will not deal directly with the customer when you finance through a dealer.  It bases its evaluation on your credit report and credit score, the completed credit application, and the terms of the sale, including trade in or down payment.  The potential lender will decide whether it is willing to buy the contract, notifies the dealership of its decision along with their stipulations of the loan and guidelines

Your dealership may offer manufacture incentives, such as reduced finance rates or cash back on certain models.  The dealer will also check to see if you qualify for any additional rebates or cash back.  Generally these discounted rates are non negotiable, and it may be limited by the consumer’s credit history, and may be available only on certain makes and models

Dealers who promote rebates, discounts or special prices will show you if or how you qualify for the incentives or discounts.  For example, some offers may include recent college graduates, military members etc.  These are set by the manufacturer passed to the dealer and the consumer must meet the requirements to gain the extra rebate.

 

 

 

 

Auto Loan Pre- Approval Instantly

Auto Loan Instant Pre- Approval serving Milwaukee Waukesha Areas at John Amato Hyundai Superstore

While many consumers are familiar with bad or blemished credit, they do not have as many options to auto loans as others.

Here at John Amato Hyundai Superstore, we are one of the exclusive dealerships in the Milwaukee area that can give you an instant decision for Pre-Approval.

In order to bridge the gap for many consumers, John Amato Hyundai Superstore offers our consumers with more options.  Most dealerships only use banks or major lenders for people with ‘prime” credit.  Here at John Amato Hyundai we give people more options.  Not only do we work with those lending companies, we have built relationships with third party lenders and have our own in house financing available.

Other dealers are not flexible or understanding when it comes to dealing with customers who have had complicated credit situations.  John Amato Hyundai specializes in it including bankruptcy and repossession.  We are here to help you rebuild and reestablish your credit.

How can we help you?

Here at John Amato Hyundai Superstore, we have been assisting people with credit issues for over 25 years.  We work with you and your credit along with our new Instant Pre Approval for Auto Loans to get you driving quicker and easier than before We also report to the major credit bureaus to get you re established and back on track to rebuild your credit.  So when it comes around to trading in your vehicle, you will have more options when it comes to auto loan.

So if you are serious about getting a vehicle and getting your credit back on track, begin with your Auto Loan Instant Pre Approval.

John Amato Hyundai Superstore – Driven to make you Happy

 

 

Bad Credit Specialists At John Amato Hyundai Milwaukee

Bad Credit, NO credit, NO problem  We help  you reestablish

 

At Amato Automotive we work with all major banks and yet we are one of the few dealerships serving Milwaukee that has its own finance company.  This allows us to make all the financing decisions.  We understand that life happens and people make mistakes.  That is why we finance your future not your past.

Our Preferred Credit Corporation has been in business since 1991.  We have been around longer and we have the team to assist you.

We know all about credit problems from medical bills, to divorce, to bankruptcy and every other situation in between.

At Amato Automotive we do our best to look at your situation and place you into a position to establish or re establish your credit

The following items we will need from you when you schedule your appointment to speak with one our our Specialists:

  • Current proof of income\
  • Drivers License or State ID
  • Utility bill with current name and address on it
  • Down payment

Schedule your appointment with us today at www.amatoauto.com