Kia of Bedford
Sales: 888-886-8435
Service: 866-434-2508
Parts: 866-434-2508
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Auto Financing Options

Getting you approved is pretty much our specialty at Kia of Bedford. However, there are still some things that EVERYBODY should know about auto financing before getting started.

 

Know Your Credit Score

 

 

You might be asking yourself, “Won’t the dealership tell me my score when the look up my credit?” Sure, most dealers will, but coming into the dealership prepared will help you find a car that you can afford faster. Plus, knowing your score ahead of time will prevent the dealership from trying to pull a fast one.

There are a number of ways in which you can get your credit score. If you already have a credit card or if you currently have another loan, check your statement. Most major credit card companies and some lenders provide their customers with monthly credit score updates. There are also a number of online services. Be careful, however, because some of those that advertise themselves as “Free” require you to sign up for a trial membership and, if you don’t cancel within a certain amount of time, you may be on the hook for a monthly fee. Finally, you can buy your FICO score directly from myfico.com.

 

Know What Kind of Auto Financing Options are Available

Every dealership is different when it comes to financing. They work with different banks, all of whom specialize in customers with different credit scores.

At Kia of Bedford, we work with over 40 lenders to give our customers the best financing options around. We also have 3 credit tiers:

  • Prime: For customers with a score of 600 and above
  • Near Prime: For scores around the 580 mark
  • Sub Prime: For customers who have had credit issues.

One lender we work with, CAC, can help people with all types of credit problems, from bankruptcy to repossessions , even no credit. All you have to do is prove that you earn at least $350 per week.

Once you know your score and you’ve identified a dealership who’s able to work with you, you can begin shopping for your car.

Your Credit Score Isn’t Everything

You’re credit score is an important aspect of financing, but there are other factors that lenders take into account. You’re chances of getting approved are greatly improved if you have demonstrated stability. Things like the number of years at your current residence and your current job play a factor. And, of course, your income level is another important part.

 

Stay within Your Means

It’s important to be practical when car shopping. A good rule of thumb, your total car payment, including insurance, should not exceed 10% of your gross income. Staying within this framework will help ensure you get approved.

 

Put 20% Down

When it comes to how much money you should put down on your new car, try to put 20% of the vehicle’s value down up front. Not only will this lower your monthly
payment, but it will increase your odds of getting approved on financing.

 

Don’t Just Focus on the Monthly Payment

When you’re given options for loan terms, you may be tempted to jump at the one with the lowest monthly payment. Don’t fall for it. First, you’ll want to avoid a repayment period that’s longer than 4 years. Sure, the monthly payment will be lower, but you’ll end up paying MORE for your car in the long run with interest.
Speaking of interest, your credit score will greatly affect your interest rate. The lower your score, the higher the interest rate is generally how it works. The reason being, that lower credit scores present a greater risk to the lender being able to recoup their investment. So, if you’re being offered a high interest rate, don’t be afraid to check with your bank or credit union to try and get a better rate. This can save you a lot of money.

 

Make Sure Financing is Final

Some dealers may allow you to take the vehicle home before the financing is officially approved. Don’t. Make sure everything is signed, sealed and final before you drive off. Otherwise, you could become a victim of “Yo-Yo Financing.” That’s what happens when customers are allowed to take a vehicle home before approval, only to get a call a few days later from the dealer, saying they were declined. Then, the customers are forced to come back to the dealership and accept a higher interest rate. There are laws that protect consumers from this practice, but they vary from state to state so be wary.
Now, you’ve just taken a crash course in the basics of Auto Financing! Remember, when it comes to getting approved, nobody has your back like KOB.

 

Sales Hours

888-886-8435
Monday 9:00 am - 9:00 pm
Tuesday 9:00 am - 9:00 pm
Wednesday 9:00 am - 9:00 pm
Thursday 9:00 am - 9:00 pm
Friday 9:00 am - 6:00 pm
Saturday 9:00 am - 5:00 pm
Sunday 11:00 am - 4:00 pm

Service Hours

866-434-2508
Monday 7:30 am - 8:00 pm
Tuesday 7:30 am - 6:00 pm
Wednesday 7:30 am - 6:00 pm
Thursday 7:30 am - 6:00 pm
Friday 7:30 am - 6:00 pm
Saturday 7:30 am - 3:30 pm
Sunday Closed

Parts Hours

866-434-2508
Monday 8:00 am - 9:00 pm
Tuesday 8:00 am - 6:00 pm
Wednesday 8:00 am - 6:00 pm
Thursday 8:00 am - 6:00 pm
Friday 8:00 am - 6:00 pm
Saturday 8:00 am - 1:00 pm
Sunday Closed

Dealership Information