You have finally found the perfect SUV for you and your family. Now, though, it's time to start thinking about how you're going to finance it. Here are some tips for financing your new SUV to make the process easier for you.

KNOW YOUR CREDIT SCORE

Your credit score is a reflection on your reliability as a loan recipient, which is why it's one of the most important aspects of your loan application. If you have a high credit score, then you will be able to get a car loan with a lower interest rate than if you have a low credit score. Knowing what your score is before you look for a loan will help you be more aware of what you can receive for financing. 

LEARN THE FINANCIAL LINGO

There are a lot of specific terms used when discussing car loans. It's important to know what these terms mean, so you can discuss your financing with the knowledge needed to understand what you're getting. Some important terms include
 
• Interest: The cost of borrowing the money from the lender. Usually expressed as an interest rate, also known as the annual percentage rate or APR
• Loan Term: The length of your loan, usually expressed in a number of month. This number is typically between 36 to 48 months
• Principal: The balance of the loan. It should decline as you make monthly payments
• Down Payment: The money you will be paying towards the purchase of your vehicle when you first buy it
• Monthly Payment: The amount you will be paying towards your auto loan each month

CHOOSE A SHORTER LOAN TERM

The length of your loan term can influence the amount you pay each month. If you choose a longer loan term, you will have lower monthly payments - but you will also end up paying more overall due to interest. Because of this, it's a good idea to consider going for a shorter loan term. While your monthly payments will be higher, you will likely have a lower interest rate. 

The finance experts at Kelley Chevrolet are ready to help you find the best deal and financing option for your new car.