Tips for Financing a New Car

Piggy Bank

The experience of buying a brand-new car is an exciting time in any driver’s life, and is made easier when you take time to understand the entire process and resources that are available to you.

To help Panama City, Springfield, and Callaway area drivers secure the best available terms and rate for their budget, Honda of Bay County created this list of simple tips for financing a new car.

Ready to learn more? Let’s go!

Tip #1: Determine Your Needs vs Wants

Most of us know the feeling of stepping inside the dealership’s showroom and immediately falling in love with every car we see. Today’s car market offers such a wide selections of cars, trucks, and SUVs that it’s easy to feel a bit overwhelmed when the time comes to choose just one.

Our advice is to sit down and devote a little bit of time determining your present and future needs. Remember, you’ll most likely own this car for several years, so it’s wise to think about any potential lifestyle changes that might happen down the road.

A few questions to ask yourself include:

  • Do I often need to use my car for moving large items?
  • Am I going to need room for a family?
  • How long is my daily commute?

Tip #2: Determine Your Budget

Second to buying a home, financing a new car is often one of the biggest investments a typical person makes during their life. Knowing this fact, we advise creating a realistic budget before you start prowling any dealership lots.

Once you have a rough idea of the type of car you need, figure out how much you’re able to comfortably put toward a monthly payment. Don’t make the error of taking on a large loan with the assumption you’ll earn more money in the future. Instead, choose a budget that you’ll feel confident paying over multiple years in your current situation.

You’ll also need to factor in things like gas, insurance, and routine maintenance on top of your monthly payment.

Tip# 3: Know Your Credit Score

Handing Keys off

Unless you plan on paying for your new car in cash, you most likely will be applying for a loan through a local lender or banking institution. Your credit score is a tool used by lenders to help them determine your ability to pay back a loan in full.

This score is determined by several factors including your current debt, payment history, credit usage, and more. Essentially, the better your credit score is, the greater your chances are to secure an appealing interest rate.

Tip #4: Do Your Homework

Here’s where it starts to get exciting. Once you’ve determined your needs, settled on a manageable budget, and checked your credit score, the next step is to do a little bit of research before heading over to the dealership.

Browse our current inventory online while paring down your options based on price, year, body style, and more! Once you pick out a few contenders, take some time to read through our list of helpful trim level reviews and model comparisons to learn more about what each car offers.

Tip #5: Schedule a Test Drive at Honda of Bay County!

Whether you’re a first-time buyer or a returning customer, it’s nice having a team of experienced professionals helping you each step of the way.

If you live near Panama City, Springfield, or Callaway, stop by our convenient location or go online to schedule a test drive today!