FAQs about financing: Tips on financing your next car

The whole prospect of financing a car, truck or SUV can seem a bit murky, and maybe even a little bit intimidating to many people. At Delaware Subaru in Wilmington, DE, we understand how daunting the financing process can be and want to help make it easier for our wonderful customers in Hockessin, DE and Kennett Square, PA. So here are some financing questions we often get along with some answers we hope will be helpful. 

Why is financing a car with a loan a good approach? 

There are many advantages in getting a car loan instead of a lease. First, if you can come up with the cash for a the down payment and make the monthly payments, a car loan is usually better for you financially than a lease. With a car loan, you're building up cash value - a share of ownership - in the car you're buying. That cash value can be converted into real money when you sell or trade-in your car, and that can help you buy your next car.

In addition, making your car loan payments on time every month is a very good way to gradually raise your credit score, as the experts in our Subaru Finance Center can tell you. When your credit score is higher, it's easier for our customers in nearby communities like Pennsville and Salem, NJ to qualify for a loan to buy a home, to get a credit card you want or get a car loan with a more favorable interest rate.

How do interest rates work with a car loan?

The interest rate you pay with a car loan gets shaped by several things, including your credit rating. The higher your credit score, the lower your interest rate is likely to be. The credit reporting agency Experian did a study in 2020 and found that people with the highest credit scores tended to get a loan interest rate that was 10 points better (lower) than people with the lowest credit scores. That's one reason it's important to raise your credit score. 

What if I don't have good credit? 

Regardless of your credit, whether it's good, bad or somewhere in between, we will do everything possible to help you get the loan or the lease to get a new Subaru - or a quality used vehicle. We have experience working with people who have challenging credit situations and we understand tough times can happen to anyone. We will use our experience and creative resources to help you qualify for a loan or lease with bad credit.

What would my monthly payment be like? 

You can find that out easily by using our online Payment Calculator. All you do is enter a few basics about the kind of deal you're looking for. Put in the price of the car you want, the amount of the down payment you can make and the term of the loan you want. You'll instantly see how much your monthly payment would be based on those variables. Not crazy about the payment amount? Adjust the variables to get a lower payment.

We have many ways to help make a Subaru more affordable 

Check our new Subaru specials often to see how our special offers and incentives can help put a new Subaru within easier reach. Ask us about our guaranteed financing programs as well as our special money down options that can help you drive home in a new or pre-owned Subaru you'll love. You're welcome to get in touch with our finance center to apply for financing at Delaware Subaru, just minutes from Carneys Point, NJ in Wilmington, DE.