For many people, financing can be confusing. With this guide, our Audi financial department aims to spell things out clearly so you know exactly what this process entails.
How Does Financing Work?
Financing a car involves taking out a loan to buy it. You will then need to pay back this money – along with interest – on a monthly basis. You can reduce the amount of money you will need to borrow with a sizable down payment, which could be increased if you plan to trade in an older vehicle.
You will have a certain amount of time to pay back your loan, which is called the term. These can vary pretty substantially, but if you want to pay the money back quickly, a short-term loan of 12 to 36 months may work. This will mean, however, that your monthly payments will be higher.
With a longer term, those payments shrink, but you will pay more in interest. Somewhere in the 48 to 72-month range may be your best bet.
As mentioned, your loan will come with an interest rate, and this is determined by different factors. First, your credit score will be checked. The term will also play a role, as you can generally get a lower rate with a shorter loan.
The type of vehicle you buy will affect the interest rate as well. In most cases, new cars have lower interest rates.
Start the Financing Process Now
If you’re ready to get thing rolling with financing, Audi Nashua makes it simple. To start, just fill out our online application to get pre-approved for your loan. One of our financing professionals will then contact you to talk about next steps.