If our customers agree on one thing, it's this: the automotive financing process just isn't as fun as shopping, test-driving and taking delivery of a new Ram, Dodge, Chrysler or Jeep. Yet finding the right monthly payment and loan term is critically important, as the fine print on your financing agreement could make all the difference between saving or spending thousands more dollars on your new vehicle.
Chris Hooker knows this firsthand. He's the Finance Manager at our Chrysler, Dodge, Jeep and Ram dealership in Batesville, and he spends his days helping our customers find the right solutions for their specific needs. When customers aren't sure whether to buy vs. lease or choose a short vs. long auto loan term, Chris has answers.
Here, we've tapped into his extensive expertise to answer some of the most common Jeep and Ram financing questions we hear from customers. Take a read through, then visit our showroom to ask Chris any other questions you may have.
Your Jeep & Ram Financing Questions Answered
What are current interest rates to buy a car?
Right now, a good interest rate may be anywhere between 6%-8%. Depending on individual credit history the rate could be higher.
How do I get a good interest rate?
A good size down payment will always be a major factor in getting a good interest rate. The less risk a bank has, generally the lower the rate.
How much of a down payment do I need to finance a car?
You do not necessarily need a down payment to purchase a vehicle. Many times, customers choose to put money down in order to reach a certain payment or to lower their interest rate. Other times, banks may require a down payment on a certain vehicle due to an individual’s credit history or negative equity carried over from the previous vehicle.
What additional costs will I be responsible for when buying a new car?
The only additional costs customers are responsible for are the documentation fee of $129 and a state lien filing fee of $3.
How can I find the value of my trade-in?
There are many different sources that try to give values of pre-owned vehicles. Kelley Blue Book and NADA are good resources in particular, but keep in mind they are not actually looking at your car to give a value. They instead use metrics from a large data pool to give a rough value.
In order to get a true offer, visit our local Ram and Jeep dealership and have us do an official appraisal of your vehicle.
Does my credit score impact my loan rate?
Absolutely. In fact, it is one of the largest factors in determining your interest rate.
I have a low credit score -- can I still finance a car?
Yes, you can. We have several banks who specialize in helping customers that may have had challenges buying a vehicle in the past.
I don’t have a credit history yet -- can I still finance a car?
Yes, although in many cases a qualified co-buyer can make the process much quicker -- and in the long run, much less expensive -- for a customer just starting their credit history.
What’s the best length for a car loan?
The best length for a car loan depends on what fits your monthly budget the best. The longer the loan the lower the payment, but you'll pay more interest over time. The shorter the loan the higher the payment, but you'll pay less interest over time. Most car loans today are anywhere from 60-84 months. Our Ram finance team can help you pick the one best for your specific circumstances.
Can you offer a better interest rate than my pre-approved rate?
In most cases yes, we can beat or match a pre-approved car loan. We have many different national banks that we work with on a daily basis to get the best rates we can for our customers.
Can I reduce my monthly car payments down the road?
In many cases, yes. We have the ability to refinance vehicles for our customers to reduce their current interest rate and lower their payment.
Can I sell my car while I’m still paying it off?
Yes, you can sell a car you are still paying off. Keep in mind you will have to pay off the loan, obtain a lien release and supply the new owner of your vehicle the title within 30 days.
Can I add a warranty when I buy a car?
Almost all vehicles purchased at our dealership will qualify for service contract coverages. We encourage all customers to protect themselves against the rising cost of repairs and inflation. The staggering number of electrical components on today’s new vehicles makes it more important than ever to make sure you are protected.