6 Questions to Ask Your Auto Finance Manager

by | Jul 14, 2016 | Personal Finance 101 | 0 comments

Your auto finance manager wants to close the deal as much as you want to buy the car. You both want to find an affordable finance option so you leave with a new vehicle and the dealership acquires a sale. When considering a new or used vehicle purchase, be bold and use these 6 Questions to Ask Your Auto Finance Manager to determine if you want to move forward with lending options. 1- Which FICO score do your lenders use? Traditional FICO scores value all your lending options equally. The FICO Auto Industry Option places a slightly higher value on your previous auto loans. So, if you have good vehicle credit history, look for a dealer that uses the FICO Auto Industry Option to get the best interest rate 2- Which financial institutions are offering competitive financing? Your auto finance manager has relationships with local financial institutions and understands which ones prefer leases or purchases. 3- How does the manufacturer’s rate and terms compare with other lenders? This is where dealerships differ from financial institutions. They can offer manufacturer’s interest rates and rebates to save you money. 4- Which credit reporting agency does the financial institution use? This information is beneficial so you can view your credit score and determine if the corresponding interest rate is acceptable before pulling your credit. 5- Do you have control over which credit reporting agency lenders use? If your finance manager is able to dictate the highest score for you, push for this as it will lower your interest rate. 6- What score do I need to get the best interest rate and term? A minimum of 700. Know your credit score before you shop for a vehicle so you can decide which financing option is best for you. Teton Pines Financial provides financial tips to boost your credit score, save you money and plan for retirement. Contact us for more tips the next time you shop for a vehicle.