Few things are more exciting than driving home a new Porsche, but an important piece of business needs to be taken care of before you roll off the lot. You’ll need to arrange car financing. When you’re financing through your local Porsche Center, this process is simple and you can rest assured you’ll be offered a great rate. Following a few simple rules of thumb helps.
Navigating Car Financing Options at Your Porsche Dealer
Pay Attention to the APR
When you’re financing through us, we’ll have you complete a credit application that we’ll then take to the lenders we work with. When we bring their financing offers back to you to review, the number you’ll want to focus on is the annual percentage rate or the APR. The APR is key because it represents the total cost of borrowing the money, including both interest rate costs and any additional fees.
Numerous factors influence the APR you’re offered, including your credit history and score, your overall financial picture, and the age of the vehicle you’re buying.
Don’t Finance Taxes and Fees
In addition to the vehicle’s purchase price, you’ll also owe sales tax and certain fees. It’s easy to have these extra costs folded into the loan you’re taking out, but paying cash for these separately is a smart approach. Including these fees in your financing package means you’ll ultimately end up paying interest on them.
Put 20 Percent Down
Making a down payment on a vehicle is smart because it reduces the total amount you need to borrow as well as the interest you’ll pay over the life of the loan. Putting 20 percent of the vehicle’s purchase price down is an excellent rule of thumb, but even a smaller down payment is helpful.
Consider Trading in a Vehicle
Trading in an existing vehicle is another great way of reducing the amount you need to borrow. The value of the vehicle you trade in minus what you owe (if anything) will be deducted from the purchase price of your new set of wheels.
Keep the Term As Short as You Can
The term of a loan refers to the amount of time you have to repay the money. Loans with longer terms, or longer repayment periods, can be appealing because they typically come with lower monthly payments. But a longer-term loan will also require you to pay more in interest. When you’re choosing between the various financing offers you receive, pick the shortest-term loan that works for you.
Financing a vehicle through your local Porsche Center is a savvy approach. We’ll be by your side the whole time, and we’ll help you land a favorable financing package. When you’re ready to finance your next vehicle, come see us at Porsche Chantilly in Chantilly, VA.
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