Welcome to the finance page of Used Cars of Frederick, we’re glad you’re here!
Used Cars of Frederick offers a diverse selection of lenders for all credit types, rather your credit is perfect or blemished, we have just the right lender for you.
Financing a vehicle can be a very complex transaction and every transaction is different.
There is no singular driver of your rate, term, or payment. While most people tend to focus solely on a credit score, although important, this can be a false representation of one’s overall ability to payoff a debt and only part of the overall equation.
Usually when dealing with credit scores, obviously the higher the better, also, the higher the easier.
Lower credit scores usually will require more investment on your part in the way of money down, that way the bank isn’t taking all the risk and shows that you have a vested interest in the vehicle.
Such things as time on job, time at residence, and length of credit utilization also provide excellent information pertaining to your ability to payoff your loan. The more stability you have, the stronger your odds are of obtaining financing.
Cash down, this can often determine whether you’ll be approved or not on its own. Simply put, the more you put down, the better your odds of being approved!
Another aspect the lenders look at is the vehicle being purchased. First, they’ll look at the age of the vehicle, generally they use the rule of eleven. The rule of eleven is calculated by the age of the car and the length of the loan, if it’s over eleven, in most cases the lender will decline the loan or counteroffer. (i.e. You’re looking at a 2010 Lexus and you want a 4-year loan, and the year is 2019. When you add the age of the car and the length of loan, you get 13, so the lender may counter for a 2-year loan instead).
They will also take into consideration the vehicle values versus the amount to finance. In some cases, with very desirable vehicles, they will produce a lopsided market valuation and require more cash down to bring the valuation in line with the book values.
Again, financing a vehicle can be very complex and sometimes confusing. There are far too many variables to include in a page on the internet, that’s why our wonderful team is standing by at the ready to help guide you through the process of obtaining financing.
You can get a good head start by filing out the credit application on this page. Once filled out, our team will receive notification of its completion and begin to get to work on your loan. Please be thorough and make sure to provide at least your last 5 years of employment and residence history.