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Outside of your home, your car may be the next biggest purchase you make, depending on if you are buying new or used and what kind of car you are buying. When it comes to financing a car, many people are absolutely clueless how the process works and what they need to know.

Shelton Used Cars in Woodlawn offers the best certified pre-owned vehicles. Our vehicles for sale are of exceptional quality and are guaranteed to get you where you need to go. We offer in-house financing, meaning when you buy here, you pay here. Below, we’ll go over some car financing do’s and don’ts that you need to know. Check out our used car inventory today!

DO’S OF CAR FINANCING

Do Know Interest Rates

Many people fail to realize that if you are financing a car, the sticker price is not the price you will end up paying for the vehicle. This is because interest is added to every loan payment, which is the price you pay the financing institution who fronts the money to the used car dealership. Furthermore, depending on what interest rate you qualify for (which is all determined by your credit score), you could end up paying a lot more over the life of your loan than you bargained for. Thus, before you step foot on a car dealership’s lot, check with your financial institution what the interest rates are for both new and used vehicles.

Do Know Your Credit Score

While checking interest rates at your bank is a good first step, you need to know your credit score to narrow it down. Otherwise, your bank will just give you a range that varies wildly. And there is a big difference between a six percent interest rate and a 16 percent interest rate. Obviously, the higher your interest rate, the more your payment will be, and the more you will end up paying the bank over the life of the loan.

Do Look at the Whole Financing Package You Are Offered

Oftentimes, car buyers only consider what their monthly payment will be. After all, this is all that you are out every month. However, this is a huge mistake many car buyers can make.

When financing a car, there are many factors that determine your payment. These include:

• The term of the car loan. The longer the term of your car loan, the less your payment will be. However, the longer the term of your car loan, the more you will end up paying.
• The down payment. Many car dealerships will offer you no down payment loans if you qualify. While this is fantastic, since you won’t have any money out of your pocket, it’s not fantastic since you will be paying interest on the entire purchase price of your vehicle. No money down will increase your payment as well since the loan amount will be higher.
• Your interest rate. As we explained above, your credit score is what determines your interest rate, and nothing else. The lower your interest rate, the lower your payment will be because you will be paying less interest every month.
• The purchase price of the car. The less you finance, the less your monthly payment will be.
• Whether or not you are trading in another vehicle. You can think of a trade-in car like a down payment. The used car dealership will give you an amount that they think your car is worth, and that dollar amount will be subtracted from the purchase price and thus the finance price of your new vehicle. If by chance you are trading in a car that you are upside down on (meaning you owe more on the car than what it is worth), that extra value will be added onto the purchase price of your vehicle.

CHOOSE SHELTON USED CARS IN WOODLAWN FOR ALL OF YOUR USED CAR NEEDS

Shelton Used Cars is a family-owned used car dealer that has been operating in Southern Illinois for over 40 years. We offer the best certified pre-owned vehicles as well as car parts. When it comes to financing, we offer in-house financing options. This means that when you buy here, you pay here; you won’t have to deal with an outside bank. 

We believe in making the used car buying process as painless as possible, which is why we love our financing options. Our car loan approval process is quick, and you’ll get the best price in Woodlawn on used vehicles. Here at Shelton Used Cars, we put our customers first. We’ll answer all of your questions, take you on a test drive, and review all of your financing options. We have no hidden fees. When you partner with us for your next used vehicle, you’ll be getting the best used car in Woodlawn near Mount Vernon. Check out our used car inventory today!