HOW IT WORKS
WHAT IS CAR/AUTO FINANCING?
When you finance a vehicle, the financial institution you are affiliated with lends you money as an installment loan. The automobile lenders earn income through charging you interest on the auto loan and for any processing fees associated with the loan. The vehicle itself acts as a kind of collateral for the finance company, giving them the authority to repossess the car if payments are not made in a timely manner.
HOW CAN I REDUCE INTEREST CHARGES ON MY AUTO LOAN?
Interest is the fee that you pay as a borrower for the loan. The lower the interest rate is, the less you end up paying as time goes on. Principal is the amount that you will have left once the interest on the loan is paid. You can reduce interest rates by paying on your loan for about 18 months. After 18 months and a good payment history you may look to refinance for a lower interest rate. You can also increase the frequency of payments which will over time lower the length of the loan, thus lowering the amount of interest you will pay.
In most cases, the longer the loan term is, the more interest you'll pay. Still, it is important to keep in mind that you can potentially pay less on a monthly basis for your car with a longer loan term length because the principle balance you borrowed is spread out over more months. If you ever want to refinance your car, it is crucial that you understand both interest rates and loan terms and how they affect one another.
HOW AND WHEN DO YOU PAY CAR LOAN INTEREST?
The best way to pay the car loan interest is by setting up direct payments with your bank or banks. This way, the money gets automatically debited from your account each month, ensuring that you never miss a payment. You can set the direct payments to leave your account bi-weekly or monthly.
PURCHASE PROCESS
How does the car purchase process work?
There are three easy steps:
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Apply on line and get approved
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Provide your proof of income (and other documents as needed) for us to verify
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Work with a dealer to find the right car or truck that fits the terms of your approval
Besides sending in the loan application, what else
do I need?
It's pretty simple. You need to be employed and must be able to provide proof of your income. We'll ask for your current pay stub. There may be other additional documents or conditions that need to be met, but these are minimal and are specific to each applicant.
Is the application process secure and confidential?
Yes. New Roads is a totally secure site and all consumer information is closely guarded. We don't share your personal information with any third parties.
