CAR BUYING RESOURCES
The questions people actually ask me, answered directly. Written by Mike, an automotive sales professional working with buyers across Dallas–Fort Worth.
Often yes, but it depends on more than your score. Lenders weigh income, job stability, existing debt, your down payment and the vehicle itself. Lower credit usually means a higher rate, a larger down payment and a narrower list of qualifying vehicles. No one can guarantee approval.
Read the full answerThere's no single required amount. Many buyers aim for roughly 10–20% of the price. What matters is that a larger down payment lowers the amount financed, reduces your monthly payment, can improve the terms offered, and keeps you from owing more than the car is worth early on.
Read the full answerYes. The dealership appraises your vehicle and obtains the payoff from your lender. If the appraisal is higher than the payoff, the difference is equity you can apply to your next car. If it's lower, that negative equity must be paid or added to your new loan.
Read the full answerBring a valid driver's license, proof of insurance, proof of income such as recent pay stubs, proof of address, your preferred payment method, and — if you're trading a vehicle — the title or your loan payoff information plus all keys.
Read the full answerAPR — annual percentage rate — is the yearly cost of borrowing expressed as a percentage. It includes the interest rate plus certain finance charges, which is why it's a better comparison tool than the interest rate alone.
Read the full answerStart with the total monthly cost of ownership, not the loan payment. Add the payment, insurance, fuel, and a monthly set-aside for maintenance and tires. If that combined number fits comfortably in your budget with room left over, the car is affordable.
Read the full answerBuy new if you drive a lot of miles, plan to keep the car for years and want full warranty coverage and current safety technology. Buy used if you want more vehicle for the money and would rather let the first owner absorb the steepest depreciation.
Read the full answerNegative equity means you owe more on your car loan than the vehicle is currently worth. It's common early in a long loan or after a small down payment, and it matters most when you want to trade the vehicle in.
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