How to Finance Your First Car

The Top Hidden Cost of Buying a Car You Need to Know About Understanding the True Cost of a Car Purchasing a car is an incredibly exciting milestone in anyone's life, fueled by independence and the allure of driving into newfound adventure. There's nothing quite like driving off the lot in a car that's entirely yours, and at Floyd Chrysler Dodge Jeep Ram, we believe that transparency is key to a satisfying car-buying experience. We want our customers to step into their new vehicles with eyes wide open, fully aware of the journey and expenses that lie ahead. From insurance costs to making a down payment, to paying a documentation fee and covering sales tax, our finance professionals are here to help you make sense of the hidden costs that come with buying a car. Visit us today in Floyd, VA! The Sticker Price: What’s Included and What’s Not The sticker price, also known as the Manufacturer’s Suggested Retail Price (MSRP), does not include additional fees and charges. Research the car’s invoice price to know the dealer’s cost and negotiate a better price. How to Negotiate the Best Price Know the market value of the car to make an informed offer. Don’t show your hand - don’t let the dealer know how much you want the car or how much you’re willing to pay. Hidden Fees to Watch Out For: Dealer Fees, Documentation Fees, Destination Fees, and Advertising Fee Dealer Fees: Documentation, Destination, and More Documentation fee: a charge for getting a license and registration, or gathering paperwork, which can range from $50 to $600 added to the car price. Destination fee: a freight charge, commonly referred to as a “destination fee”, is the cost of shipping a vehicle from the manufacturer to the dealership added to the car price. Advertising fee: a fee for marketing the car added to the purchase price, which some experts argue is a cost of doing business and shouldn’t be passed down to the consumer. Pay Sales Tax: What You Need to Know Sales tax: a fee that varies by state, typically ranging from 2% to 8% sales tax on the vehicle price. Factor sales tax into the total cost of the car when negotiating the price. Additional Expenses to Consider: Interest Rates, Car Insurance, GAP Insurance, Extended Warranty, and More Financing and Loan Costs: Interest Rates and Markups Finance charges: fees associated with a car loan, including interest, loan origination fees, and other fees. Loan payment fees: markups on the interest rate can result in higher loan payments. Insurance: Pricier Options and How to Get a Quote Car insurance: mandatory in almost every state, with prices varying depending on factors like driving record, age, and location. Get a quote from multiple insurance companies to compare rates and coverage options. Optional Upgrades and Add-ons: GAP Insurance, Extended Warranties, and More GAP insurance: a type of insurance that helps cover the difference between the financed amount and the car’s value if it’s stolen or totaled. Extended warranty: a type of insurance that covers repairs and replacements but may not cover normal wear and tear. Optional upgrades: services like window tinting and fabric protection, which can be compared to prices from other vendors. Avoiding Unnecessary Charges: Save Money On Hidden Costs Contesting Nonessential Fees and Charges Review the paperwork carefully before finalizing the deal to ensure the numbers match what you’ve been told. Contest any nonessential fees or charges that are not mandatory. Knowing What You Want and Standing Firm Know what you want and stand firm on the price and terms. Don’t fall for upselling or add-ons that you don’t need. Finalizing the Purchase Price: The Final Price Plus All Additional Costs Reviewing the Fine Print: Registration and Title Fees Review the title and registration fees to ensure they are accurate and reasonable. Verify the total cost of the car, including all fees and charges, before signing the contract. Verifying the Total Cost Before You Sign Ensure you understand all the terms and conditions before finalizing the purchase. Calculate the total cost of the car, including sales tax, financing costs, insurance, and any additional fees. Buying a car is a significant financial undertaking, and the journey doesn't end once you drive off the lot. The hidden costs associated with car ownership can add up quickly. At Floyd CDJR, our goal is to provide you with the knowledge and tools necessary to make the best possible decision for your needs and budget. Visit us today in Floyd, VA! CONTACT US

How To Save Money When Buying A Car Purchasing a new car is an exhilarating experience. The thrill of choosing your perfect vehicle, the joy of envisioning all the adventures you’ll have, and the satisfaction of driving off the lot in a car that feels like it was made just for you are all moments to be cherished. However, the financial aspect of buying a car can sometimes cast a shadow over this exciting milestone. One of the biggest concerns of many buyers is figuring out how to get the lowest car payment possible, ensuring that the joy of your new purchase is not overshadowed by financial stress. At Floyd Chrysler Dodge Jeep Ram, we understand how crucial it is to find a car that fits your lifestyle and budget. In this comprehensive guide, we’ll share valuable insights and practical strategies to help you get the lowest car payment and empower you with the knowledge needed to buy your new car. Visit us in Floyd, VA, today! How To Save Money On Car Payments Understanding Your Budget Before you begin shopping for a new car, it’s essential to have a clear understanding of your budget. Start by assessing your monthly income, expenses, and how much you can realistically allocate toward a car payment. This strategy for how to get the lowest car payment comes with a general rule of thumb: Don’t let your car payment exceed 15% of your monthly pay after taxes. By setting a firm budget, you’ll be better equipped to make decisions that align with your financial situation. Choose The Right Vehicle Selecting a vehicle that fits within your budget is crucial for having an affordable car payment. While it might be tempting to go for a brand-new, fully loaded model equipped with all of the latest technology and luxury features, a more modestly priced vehicle can make a significant difference in your monthly payments. Our finance team can provide you with a huge selection and range of vehicles to choose from to meet every need and budget, from practical sedans to spacious SUVs and powerful trucks. We can help you find the right vehicle for your lifestyle and help you explore how to get the lowest car payment possible for your financial situation when you visit our dealership. Consider A Larger Down Payment A larger down payment can lower the amount you need to finance, resulting in smaller monthly payments. By putting more money down up front, you reduce the principal of the loan, which in turn decreases the interest you’ll pay over the life of the loan. Save up for a substantial down payment if it’s possible for you to do so, as this is a major play in how to get the lowest car payment, and being able to pay more upfront not only helps in lowering your monthly payments but also demonstrates to lenders that you’re financially responsible. How To Pay Less Interest On A Car Loan Improve Your Credit Score A major factor in determining your interest rate is your credit score, and improving it is one significant method in how to get the lowest car payment for your vehicle. Higher credit scores typically qualify you for lower interest rates, and increasing your score is one method in how to get the lowest car payment and best interest rate for your loan. If your credit score is on the lower end, it’s important that you take the steps to improve it prior to filling out the loan application. This might include paying down existing debt, ensuring timely payments on your bills, and correcting any errors on your credit report. Shop Around For The Best Interest Rates Discover the best rates by shopping around, as different lenders offer different rates, which can vary significantly in cost. Find the best rate for your budget before settling, as the first offer you receive may be substantially more costly than one offered by another lender. Our financial team works with a network of trusted lenders and can help you compare rates to ensure you get the best possible deal. We’re dedicated to helping you secure the lowest interest rate available, which can have a considerable impact in how to get the lowest car payment for your situation. Consider Shorter Loan Terms Longer loan terms will usually have higher interest rates than short term loans, but provide the benefit of having lower monthly payments. Going for a shorter loan term can save you more money in the long run, given that you will pay less interest, but it can cost more upfront at the expense of paying off your car sooner. We can help you determine the best option for your situation by weighing out the pros and cons of each loan type, so that you can make a well-informed decision about which loan to sign off on and help you determine how to get the lowest car payment and loan rate. Ready to get pre-approved? Fill out the credit application on our website to start discovering the great loan rates available for you. Getting More Bang For Your Buck By following the strategies listed above and working with our dedicated finance team, you can secure the lowest car payment possible and drive home happily in a vehicle that perfectly meets your needs and budget. Whether you’re in the market for a new or Certified Pre-Owned car, we’re here to help you every step of the way. At Floyd CDJR, we believe that buying a car should be an exciting time regardless of how complicated it can be, and it’s our goal to help you figure out how to get the lowest car payment possible for your situation. Our financial experts can help you assess all of the options available to you within your budget and get you on the right track to buying your next vehicle. Visit us in Floyd, VA, today! GET PRE-APPROVED

Navigating Auto Financing with Stellantis Financial Services At Floyd Chrysler Dodge Jeep Ram, we know that when it comes to purchasing or leasing a vehicle, finding the right financing option is one of the most important steps in the process. Stellantis Financial Services is dedicated to making this process smooth and manageable for customers. From flexible payment plans to an array of resources for financial education, Stellantis Financial Services provides a suite of unique services designed to cater to diverse needs. Learn more about these convenient services offered at Floyd CDJR by reading this blog. Understanding Stellantis Financial Services Stellantis Financial Services is the dedicated financial arm for the Stellantis group, which includes well-known brands like Chrysler, Dodge, Jeep, Ram, and FIAT. Stellantis Financial Services offers tailored financing solutions for both personal and commercial customers, ensuring that everyone can find a plan that fits their financial situation and vehicle preference. Flexible Financing Options One of the standout features of Stellantis Financial Services is the flexibility it offers in payment plans. Here are some of the options available. Standard Financing: This traditional Stellantis Financial Services auto loan option allows you to finance your vehicle over a certain period, which typically ranges from 36 to 72 months. This plan is ideal for those who want to own their vehicle outright at the end of the loan term. Lease Agreements: Leasing is an attractive option for customers who prefer driving a new car every few years without the commitment of ownership. Lease terms usually range from 24 to 48 months, and Stellantis Financial Services offers various mileage options to suit different driving habits. Deferred Payment Plans: For well-qualified buyers, Stellantis Financial Services provides deferred payment plans, where no monthly payments are required for up to 90 days on select vehicles. This can be a great relief for those who need some financial flexibility when first acquiring their vehicle. Lease Loyalty Programs: For returning lessees, Stellantis Financial Services offers lease loyalty bonuses and incentives, making it easier and more affordable to transition into a new vehicle. Enhanced Online Account Management Managing your auto loan or lease has never been easier with the online portal, soon to become the mySFS digital customer experience. Available online and via an upcoming mobile app, Stellantis Financial Services allows customers to perform a range of account management tasks, including making secure online payments, checking loan or lease balances, viewing and downloading statements, and customizing payment schedules. This digital convenience allows you to manage your finances at your fingertips, fitting seamlessly into your busy lifestyle. Educational Resources and Tools Understanding the nuances of auto financing can be challenging, but Stellantis Financial Services provides a robust Learning Center equipped with resources to help customers make informed decisions. Whether you’re deciding between leasing and buying or looking to maximize your vehicle's resale value, the Learning Center offers articles and guides to support your financial literacy. Commitment to Customer Satisfaction At the heart of Stellantis Financial Services is a commitment to customer satisfaction. The company understands that each customer's financial situation is unique and offers personalized assistance to find the best financing solution. With dedicated customer service, Stellantis Financial Services strives to make the financing process as transparent and straightforward as possible. Special Offers and Promotions Stellantis Financial Services frequently rolls out special offers and promotions to provide even greater value to customers. Depending on what’s running, you can receive promotions such as: No Monthly Payments for 90 Days: Available on select models, this offer provides financial breathing room for new buyers. Lease Loyalty Bonus Cash: Significant savings for eligible returning lessees of certain Stellantis brands. Low APR Financing: Competitive interest rates on financing for new models, helping to reduce the overall cost of your vehicle loan. Business and Commercial Financing For business owners, Stellantis Financial Services offers tailored commercial lending solutions. From traditional purchase loans to lines of credit, Stellantis Financial Services provides flexible options to support the unique needs of commercial vehicle fleets. This ensures businesses can maintain their operations smoothly while managing costs effectively. Pay Your Way Choosing the right financing option is a crucial step in the vehicle purchasing process. Stellantis Financial Services stands out with its comprehensive range of flexible financing plans, user-friendly account management tools, and a wealth of educational resources. Whether you are an individual buyer or a business owner, Stellantis Financial Services is committed to providing the support and services needed to make your vehicle financing experience as seamless and beneficial as possible. Explore their offerings today to find the perfect financing solution for your next vehicle at Floyd CDJR. FINANCE TODAY