The Finance Process

How Are Auto Loans Determined?

Auto loan lenders look at a variety of factors when considering loan applications. The documents and financial information that you bring help auto lenders determine if you are approved. Lenders consider:

• Your current income and monthly expenses
• Your credit score and 12-month history
• How much you are putting down
• The value of your trade-in vehicle
• The price of the new vehicle you are considering

These factors are all considered and help lenders determine your approval status, as well as interest rates and APR. Daytona Nissan’s financing team works hard to help you find affordable loans with the best available terms.

Payments

Estimating monthly auto loan payments is critical for securing a loan that you can afford. You can estimate monthly payments by looking at 3 loan factors, including:

The Daytona Nissan financing team works with you to determine what you can budget for monthly. Then, we custom tailor the loan terms to fit your budget. For example, putting 10% more down, will lower monthly payments by 10%. Plus, extending the length of the loan can also lower payments, as can securing a loan with a lower interest rate.

Loan Amount

This is the total of the loan, generally the purchase price of the vehicle minus down payment and trade-ins. A larger down payment or trade-in value can limit the amount borrowed.

Loan Term

The term of the loan is the length of time needed to pay off the loan. In generally, auto loans are given 36- to 60-month terms. A shorter term will increase monthly payments, while limited interest paid.

Interest Rate

The interest rate or Annual Percentage Rate (APR) of an auto loan is determined by credit score and income.

Credit Score

Your credit score is a number that defines your creditworthiness and helps lenders understand the risk they might have in offering you a loan. A higher credit score, in general, results in a greater likelihood of loan pre-approval, as well as more favorable loan terms. But even customers with bad or no credit, can still be approved.

Looking For a Loan, But Have Bad Credit?

If your credit score is average or below average, or you’re a first-time buyer who hasn’t established credit, that’s OK. You can still be approved for an auto loan. In fact, auto financing can be a useful way to repair your credit history and boost your overall score.

The Daytona Nissan financing experts have years of experience helping customers work through credit issues and secure auto loans. But there are a few things you can do to increase your chances of being approved.

Check Your Credit Score for Errors

An error in your credit report can have real impact on your overall score. When preparing to apply for an auto loan, double-check your report for errors.

Prepare Financially

Credit score is just one determinant in the approval process. Your monthly income, 12-month payment history, trade-in value and down payment amount are also critical. A larger down payment or trade-in can increase your likelihood of being approved. Plus, work with credit agencies and your lenders to repair your credit history.

Be Prepared

Bringing the proper documents and information with you can greatly increase your chances of getting approved. Lenders must validate facts during the approval process, and buyers who are prepared tend to look better to lenders.

Get Pre Qualified

Auto loan pre-qualification gives you the power to show up at the dealership as a buyer, not a browser. Get pre-qualified here. This process is convenient and secure. We believe everyone deserves a second chance.

Tips for Car Finance and Budgeting

Preparing financially and budgeting for an auto loan is critical for improving your chances of being approved. So what can you do? Whether you’re a first-time buyer, or you have less-than-stellar credit, here are a few questions you can ask yourself that will help you prepare:

What Can I Afford?

First consider your budget and determine what you can afford as a monthly payment. Choosing a more cost-effective vehicle will limit the amount that needs to be borrowed, which in turn will improve your chances of being approved. Daytona Nissan offers a range of new and pre-owned vehicles at various price points that are available for financing.

How Much Can I Put Down?

Putting more down upfront can be an effective strategy for ensuring approval and lowering monthly payments. Determine how much you can afford to put down. This will help our sales team know which cars will fit into your budget.

What's My Trade-In Worth?

Before you start shopping, determine the value of your trade-in vehicle. This value can be added to a down payment, or serve as your down payment, depending on the value. This will help you know what you can afford when shopping. Use our online trade valuator here.