Ask a Ruxer Ford Finance Expert: Complete Auto Financing Q&A

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Ask a Ruxer Ford Finance Expert:
Complete Auto Financing Q&A

Are you considering buying or financing a car? It's essential to be well-informed on topics like interest rates, credit scores, down payments and warranties. We've compiled a list of frequently asked auto financing questions to help shed some light on these complex concepts and help you make an informed decision when purchasing your next vehicle. Read through what our experts have to say, then visit our Ford dealer near Evansville to speak with a loan specialist in person!

New Car Financing Q&A


What are current interest rates to buy a car?

Interest rates vary by borrower and are determined based on several factors, including credit score, the vehicle, loan term and lender. A higher credit score typically results in a lower interest rate, while new vehicles and shorter loan terms often yield lower rates. Ruxer Ford can help you compare interest rates from different lenders to find the best rate for your situation.


How do I get a good interest rate?

Something you can do to lower your interest rate is try and raise your credit score. While it takes time to improve your credit score, there are several steps you can take, like paying your bills on time or keeping the balance on your credit cards low.

Asking for a shorter loan term is another way to lower your interest rate since you’ll be borrowing from a lender for a shorter period of time. While this isn’t a realistic option for everyone, if you’re able to afford the higher monthly payments from short-term loans, it’s a great way to decrease overall financing costs.

If you have poor or no credit history, getting a cosigner for your loan agreement might be a viable option for lowering your interest rate. Having a reliable, willing friend or family member sign on to take responsibility for the loan in case you default on it might make lenders feel as though you’re less of a risk, and therefore offer you a lower interest rate. Be cautious when doing this, though -- your relationship with the cosigner could be harmed if you fail to pay off your loan and they’re left with the bill. 


How much of a down payment do I need to finance a car?

The necessity of a down payment is determined by the lender on an individual basis. While not always required, buyers are free to make a down payment if they choose.


What additional costs will I be responsible for when buying a new car?

Most lenders charge a "Prepaid Finance Charge," which is applied to the loan. Do note that Ruxer Ford does not charge or collect any "Document Fees," so you can buy a new Ford from us without worrying about how any additional paperwork costs may affect the out-the-door price.


How can I find the value of my trade-in?

One of the easiest options to get your car's trade-in value is to use our online trade-in calculator. With just a few basic facts about your car, this tool can return a highly accurate valuation estimate. We'll verify this estimate with an in-person appraisal at our nearby Ford dealership. Our process is one of the easiest ways for you to accurately value your trade.


Does my credit score impact my loan rate?

Absolutely. A higher credit score typically results in a lower interest rate, as it indicates a good history of repaying debts on time, making you a less risky borrower.


I have a low credit score -- can I still finance a car?

Credit score is just one of many factors that lenders consider when deciding whether to finance someone.


I don’t have a credit history yet -- can I still finance a car?

You likely can, though you'll want to talk with our team just to be sure. Similar to the above answer, credit history is just one of many factors that lenders consider when approving financing.


What's the best length for a car loan?

Each situation is different. For one person, 60 months might be the best loan term. For someone else, an 84-month term may be necessary to secure an obtainable payment. Note that longer loan terms tend to have higher interest rates than short-term loans. So, while you will have to pay a higher amount each month on the principal, a short-term loan may save you a lot of money on interest. 


Can Ruxer Ford offer a better interest rate than my pre-approved rate?

Due to our access to multiple lenders, there is a possibility we can secure you a better interest rate than your pre-approved rate, depending on your situation.


Can I reduce my monthly car payments down the road?

You may be able to reduce your monthly car payments by refinancing your loan, trading in your current car for one with a lower rate or longer term or improving your credit score.


Can I sell my car while I'm still paying it off?

You can sell your car regardless of outstanding debt; however, the debt must be paid off before transferring the title to the vehicle's new owner. Ruxer Ford can assist you with the payoff if you choose to trade in your car.


Can I add a warranty when I buy a car?

Absolutely! Adding a warranty is highly recommended to avoid the added expense of repair bills for covered components. Many customers choose to purchase Extended Service Contracts through Ruxer Ford due to the high-tech nature of modern vehicles and the rising cost of repairs.

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