A car purchase is a great way to kickstart 2022. Of course, with a new car purchase comes the financing process. You probably have some questions regarding the paperwork and logistics. We answer the questions our Toyota financing department in Baltimore, MD receives the most often from car buyers like yourself.
- Can I Trade in My Car if I’m Still Paying Off Its Loan?
You can trade in your car even if you’re still paying off its loan. We pay off the remaining balance, with the amount paid added towards the financing of your new car purchase.
- What’s the Minimum Credit Score to Qualify for a Loan?
There’s no set minimum to be eligible for a loan. However, it’s in your best interest to spend several months prior to the car purchase to elevate your score. A higher score makes you more likely eligible for better loans with lower interest rates and terms favorable to the borrower.
- What’s the Minimum and Maximum Down Payment?
You should strive for a minimum down payment of 10% of the car’s value. There’s no maximum limit you can pay as a down payment. However, 20% is a good figure to aim for if you wish to shorten your payment duration.
- Do I Need a Co-Signer for Finance Approval?
If you have a high credit score and can submit proof of a stable income, then a co-signer usually isn’t required. On the other hand, a co-signer may help you get approved if you have a lower credit score or no credit at all.
If you have further questions, please speak with one of our dealers at Heritage Toyota Catonsville. We provide financing assistance for all of our models, from the Toyota Camry to the Toyota Tundra.
