What to Expect When Financing a Vehicle | Mobile AL
What to Expect When Financing a Vehicle in Mobile, AL
If you’re thinking about purchasing or leasing a vehicle from our inventory, then congratulations. Upgrading your vehicle to a Lexus can be empowering, but many can be intimidated by the financial side of things to finalize their choice to upgrade. But at Lexus of Mobile, we’re here to help. We’ve put together this list of tasks, documents and terms to know ahead of time so you can feel prepared. The best part? You don’t have to wade through the paperwork by yourself. Our financial experts are on stand-by to help with any questions you may have. Keep reading to learn what to expect when financing your vehicle.
What do I need to do beforehand?
Before shopping for your next new or used Lexus, ask yourself these questions:
- What’s my credit score? The higher your score, the better chance you have of qualifying for a lower interest rate.
- What are the interest rates lenders are offering? Research several institutions before starting the finance process. You’ll make a stronger case in negotiation and, if you’re pre-approved, you’ll be more likely to secure the interest rate you want.
- What can I afford? If you know your credit score and have an idea of the interest rate you’ll receive, use our payment calculator to determine your monthly payments.
What documents do I need to bring?
When you’ve decided on the vehicle you want to purchase or lease, these are the four primary documents to bring with you to the office.
- Proof of income. We will need copies of your pay stubs from your last month’s checks and a summary of what you’ve been paid to-date in the past year.
- Credit and banking history. Any information about your financial obligations or other outstanding loans are needed. Mortgage or lease agreements, credit card statements, bank statements or alimony or child support payments count in your history.
- Proof of residence. A mortgage statement or any personalized mail will count as proof of residence.
- Proof of insurance. Bring a valid insurance card so we know that your current vehicle is insured and you’ll easily be able to transfer insurance to your new car.
And if you decide to finance with another lender instead of our finance department, you’ll want to bring proof of your approved loan as well.
What determines my loan terms?
Generally, an automotive loan lasts between three and five years. Our finance team (or any lender) will run a credit check and ask income-based questions to determine your credit-worthiness. Your interest rate is determined by how secure your finances are. This can include how much manageable debt you have, what your income is currently and whether you’re in good standing with your insurer. The higher your credit score is, the lower your interest rate will be. Our team has worked with a variety of credit histories and scores, so don’t feel like you need to shy away from the conversation if you’re unhappy with your score.
Let’s talk. If you’d like to purchase a vehicle or want to know more about how to finance in Mobile, AL, drop by Lexus of Mobile at 3024 Government Blvd, Mobile, AL 36606 for a test drive. We look forward to serving our customers from Gulf Coast, Daphne and Spanish Fort.