GMC Financing Frequently Asked Questions

Navigating the GMC financing process can be difficult, especially for first-time buyers. It can seem like all the fun of selecting your next ride is overshadowed by intimidating questions about money. To help new buyers find their footing, here are the answers to three frequently asked questions concerning the GMC financing process. 

Should I Finance or Lease?

You may be disappointed to find out there is no definite answer to this question; it ultimately comes down to how much of a financial commitment you’re looking to undertake. The length of the average car lease can range from 24 to 36 months, while most car loans are paid off over a 72-month loan period. Depending on how long you’re willing to make payments, and whether or not car ownership is your ultimate goal, one option will make more sense over the other. 

How Can I Budget for Auto Financing?

A simple tool for budgeting for a vehicle is the 20/4/10 rule. Here’s an outline of this rule:  

• Put down 20% of the principal loan amount at the time of purchase 
• Sign a four-year loan  
• Spend no more than 10% of your monthly income on your car (loan/lease payments, insurance, etc.)  

When you find these three factors and crunch the numbers, budgeting monthly payments will be much easier.  

How Can I Get Approved for Financing?

Your credit can make or break your loan application, so make sure to try and spruce it up before applying. Try to pay off any outstanding balances, or make minimum payments if paying your debt off entirely is out of the question.  

To answer any lingering questions not answered above, or to go over your financing options, make sure to reach out to Neil Huffman Chrysler GMC of Frankfort. A wide selection of new and used vehicles awaits you, so stop by today! 

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