Financing a New Kia in Maryland? 5 Car Financing Essentials You Should Know

Are you ready to buy a new sedan, SUV, or sportscar? By following a few simple steps, you can get the right car financing in Temple Hills, MD for you and roll off the lot in the Kia of your choice.

1. Your Credit Score Is Key

Before you begin shopping around for a new vehicle, take the time to check your credit score. Why? Because your credit score is a major factor in how much a vehicle loan will cost you. Buyers with good credit scores generally qualify for low interest rates and are able to borrow larger sums of money. If your credit score is low and you don’t need a new car right away, consider improving your score first by taking steps like paying down existing debt.

2. Shop Around for Rebates

Rebates are financial rewards that are offered by the vehicle’s manufacturer as a way of encouraging sales. Depending on the rebate, it may be offered as a cash discount, or it may count toward any down payment you make. The great thing about rebates is that they reduce the total purchase price of your new vehicle, saving you money. But rebates sometimes come with special terms, so make sure you understand the ins and outs of the offer before you buy.

3. Go for the Shortest Term You Can Afford

The term of the loan refers to the number of years you’ll spend paying off what you owe. Loans with longer terms can be tempting because they usually carry lower monthly minimum payments. But the longer it takes you to pay off debt, the more you end up paying in interest on the loan. When evaluating various loan offers, select the offer with the shortest term as long as the monthly payments will fit into your budget.

4. Pay Taxes and Fees in Cash

The purchase of any vehicle comes with certain taxes, fees, and optional add-ons like extended warranties. You’ll have the option of having these fees folded into your financing, but many smart buyers opt to pay cash for these separately. When these fees are financed, you’ll end up paying interest on them over time.

5. Make a Down Payment

Although it is possible to purchase a car without a down payment, it’s always a good idea to put money down. When you make a down payment, you’re lowering the total amount of your loan, and you’ll pay less in interest as a result. You may also be able to lower your monthly payments. And lenders will be more likely to agree to finance your purchase if you’re making a down payment. This is especially true if you have a low credit score. You can contribute towards your down payment by trading in your car. Find out your car’s estimated value here!

Ready to Finance a New Kia in Temple Hills, MD?

Ready to get a new Kia and find favorable vehicle financing? You simply need to be prepared, and our dealership can help. Stop by DARCARS Kia of Temple Hills to buy your vehicle today. If you want to start financing at home, get started with a loan pre-approval application!

Tags: Buying a New Car, Car Financing Tips
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