Ask a Lutesville Ford Expert: Auto Financing FAQs
Whether you're looking to lease a new Bronco Sport SUV or buy a used F-150 truck, the auto financing process can seem intimidating from the outside. That's why the Lutesville Ford team is dedicated to being with you every step of the way.
Michael Massa, Finance Manager here at Lutesville Ford, receives questions about how to finance a car all the time. That's why he's put together this list of helpful auto financing FAQs for you to check out ahead of your visit! That way, you can feel confident and prepared ahead of stopping by our Ford dealership in Marble Hill.
Car Financing Frequently Asked Questions
01
How much down payment will I need for a finance agreement?
Every finance plan is different and the down payment amount will vary depending your situation. The higher your initial down payment, the lower your final monthly payment will be.
02
What interest rate will I be charged?
03
Can I sell or trade in a financed car that I still owe money on?
You can sell or trade in a financed vehicle when purchasing a new vehicle, but it's important to note that if you owe more on the vehicle than it's worth, this “negative equity” will have to be paid off with a down payment or carried into the new loan on the new vehicle. The amount of negative equity that can be carried into the new loan will vary depending on what the lending institution (bank) will allow. This is referred to as “loan to value ratio.”
04
Am I able to add any accessories or vehicle ownership-enhancing products to my financing?
You can add accessories to your financing plan as long as that amount is within the “loan to value ratio” limitations of the bank providing your financing.
05
Am I able to finance if I don't have a credit history or a low credit score?
There are financing resources available to individuals with a low credit score, and our finance manager can help provide those options once there is a full understanding of your unique car loan.
06
How can I find the value of my trade-in?
There and many online resources available to value your trade. However, the most accurate way to get a trade-in value is to contact our sales team with the details of your trade-in.
07
What terms are available for a loan or lease?
The available terms for your loan will depend on the model year of the vehicle you are purchasing.
08
Can I reduce my monthly car payments down the road?
Your monthly car payments are locked in at the time of financing. If there is a need to lower your car payment later on, you'll need to refinance it at a financial institution.
09
How long does it take to get an answer about financing?
In most cases, less then 30 minutes.
10
What does the dealership do with my credit information?
We check one of the 3 national credit bureaus, then we submit it to the lender or lenders who best meet the criteria for financing.
11
Does it hurt my credit to apply for financing?
A single credit inquiry generally has little impact on your credit scores. One inquiry might drop your score 2 to 7 points or so. And multiple inquiries created as a result of shopping for an auto loan are not supposed to hurt your credit scores significantly if you limit your shopping to a short window of time.
What Lenders Does Lutesville Ford Work With?
Lutesville Ford is proud to work with a variety of national banks and local credit unions to offer you the greatest flexibility possible. The list of lenders we work with includes the following:
- Ally
- BMO Harris Bank NA
- Bank of America
- CapitalOne
- CarGurus Inc
- Crescent Bank and Trust
- Fifth Third Bank, National Association
- First Community Credit Union
- Ford Credit eContracting Enrollment and Training Materials
- Ford Motor Credit Company
- Huntington National Bank
- RouteOne Marketing
- Scott Credit Union
- The Central Trust Bank
- US Bank
- Wells Fargo Auto