What Are Ways You Can Finance Your Next Vehicle Purchase?
Car buyers often ask themselves, "How do I finance my vehicle?".
Before visiting our Jeep dealership in Ruidoso, NM, we recommend applying for loan pre-approval. This way, you know ahead of time which loan programs and terms you qualify for and how much you can afford to borrow. A high credit score can mean a lower interest rate, but our team works with all buyers to find the best financing arrangement possible for their dream vehicles.
Making a down payment can help you get the most affordable vehicle loan. Experts recommend putting down at least 20% of the purchase price. The more you pay upfront, the less you must borrow, which means you'll pay less in interest.
If you still have concerns or are still asking yourself, "How do I finance my vehicle?" consider a pre-owned vehicle. At Sierra Blanca Motors, we offer a wide selection of high-quality pre-owned vehicles that can save you money. Buying a pre-owned car or truck can help keep your payments within your budget.
How Much Can You Afford to Spend on a Monthly Car Payment?
Establishing a budget is essential before shopping for a new or pre-owned vehicle.
Generally, experts recommend keeping your monthly vehicle payment to 15 to 20% of your monthly income. Factors including the price of the vehicle, interest rate, and loan length can influence the monthly payment amount, so shop around for the best terms.
Before you start shopping for a new vehicle at our Chevrolet dealership in Ruidoso, NM, it's critical to establish a firm budget. Remember that the longer the loan term, the more interest you'll pay. Consider the overall cost of the loan compared to the monthly payment to determine the best option.
What Kinds of Vehicle Fit within This Budget?
Getting pre-approved for a vehicle loan makes shopping for a new car or truck much more manageable. Pre-approval shows you how much you can borrow and the estimated monthly payment. This way, you can narrow your search when you arrive at our dealership in Ruidoso, NM.
Once you know your budget, be flexible when looking for a vehicle. You may need to compromise on some details, such as color or extra features, to stay within budget. Keep in mind that many pre-owned vehicles have the same features as new cars, making them valuable options.
When you visit our Sierra Blanca Motors dealership, our team can help you find the right vehicle for your needs and budget.
How Do Federal Rate Increases Affect Your Car Loan?
With auto loan interest rates increasing, many drivers in New Mexico have concerns about buying a new vehicle. Even a slight increase in the rate can mean a bigger monthly payment. So how do federal rate increases affect your car loan?
Unfortunately, federal rate increases typically make it more expensive or challenging to borrow money. Although the Federal Reserve doesn't set the actual interest rates for auto loans, the federal interest rate serves as a benchmark for lenders to determine how much to charge borrowers. Since a higher federal interest rate makes it more expensive for banks to lend money to each other, that increase also applies to consumer loans.
The news isn't entirely bad, though. Higher interest rates can reduce consumer demand, meaning it may be easier to find the vehicle you want. After several years of vehicle shortages, this is good news for car shoppers ready to buy.
Our financing team is happy to help you navigate loan options and secure your vehicle.
Sierra Blanca Motors | Your Local Ruidoso, NM, Dealership
Whether you want a new or pre-owned vehicle, we can answer the question, "How do I finance my vehicle?" and help you find the perfect vehicle for your specific needs.
If you have more questions about financing or want to start your vehicle search, stop by Sierra Blanca Motors. Our experienced team of professionals wants every customer to drive away in a vehicle they can afford and love. We make it easy for Roswell, Alamogordo, and Ruidoso drivers find their perfect vehicle.
Visit Sierra Blanca Motors in Ruidoso today to start shopping, or contact us today.
