Auto Loan Frequently Asked Questions
Some aspects may not always make perfect sense if you are new to the car-buying process or a seasoned veteran. The financing process could be among those. Fortunately, Williamsville area shoppers have a friendly and experienced financing team at Northtown Automotive Companies who are familiar with all aspects of financing and can answer your questions.
The loan process is one of the categories we get the most questions from Buffalo shoppers. So, our financing team has put together a list of frequently asked questions to help give you a head start as you search our new inventory for your next vehicle.
How does my credit history influence auto loan approval?
Your credit score could be among the biggest factors in the kind of loan you receive. If you have a higher credit score, you can lock in more beneficial or lower interest rates on the loan. That target should be a score of around 660. If you have a lower credit score, your rates will be less favorable. But you'll still be able to find lenders able to work with you.
Are there any special auto loan programs for first-time buyers?
Northtown Automotive believes every driver should have access to a great car. And if you're a first-time buyer, you want the process to move as efficiently as possible. Many of our lenders have programs that work with first-time buyers to ensure they lock in great rates that work within their budget. Simply talk to our financing experts to see which you may qualify for.
What down payment percentage is typically required?
The amount you put for a down payment can affect the amount you pay each month. While there is no set number for your down payment, the general thought is that 20% of the price of the car is ideal. But, there is no standard.
Can I obtain an auto loan for a pre-owned vehicle?
For sure. Lenders usually don't have a problem issuing loans for pre-owned cars. You improve your chances by providing a decent down payment and improving your credit history.
What are the penalties for late payments on an auto loan?
Not all lenders are alike so that penalties will differ. Lenders will work with you to determine a solution if you are late on payments. However, late payments could result in late fees being assessed. Your credit history could take a substantial hit, affecting you for up to seven years. If you slip far enough, the lender could get your car repossessed as collateral for the loan.
How do I calculate the total cost of ownership with an auto loan?
Of course, there is more to buying a car than securing a loan. A new-to-you car is a financial commitment. You will have to pay sales tax, licensing, and registration fees. These are generally easy to factor in, and you can find these costs beforehand. You must also consider maintenance costs, gas prices, and insurance. These will be affected by your driving habits and other factors.
What is GAP insurance, and should I consider it for my auto loan?
GAP insurance is a good choice for drivers who owe more loans than the car is worth. This covers your car if you get in a crash, which totals your car, or in the event it is stolen. This option is completely optional. Ask our financing team to see if this is ideal for your situation.
What is the process for transferring an auto loan to another person?
Perhaps you have a car with an outstanding loan, but you plan to sell it or hand it to your family's new driver. Or maybe you need a little help handling the payments. First and foremost, you must let the lender know. The person taking over the payments must fill out a loan application. Their financial situation could dictate new terms of the loan, including payment amounts. It is not a quick process, but you can switch responsibility to another owner.
Don't get overwhelmed when you are ready to buy a new car. Contact our financing team to help make your experience easier. Whether you are ready to trade in your car or learn more about Northtown Snap Delivery, we can address any questions or concerns you have so that you can enjoy the entire process.
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Northtown Automotive
Amherst, NY 14226
- Sales: 716-614-0500
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Northtown Honda
2277 Niagara Falls Blvd
Amherst, NY 14228
- Sales: (716) 243-3221
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Genesis of Buffalo
8143 Main Street
Williamsville, NY 14221
- Sales: 716-831-2900
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Northtown Resale Center
1035 Millersport Hwy
Amherst, NY 14226
- Sales: 866-650-7404
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Northtown Collision Centre
3840 Sheridan Drive
Amherst, NY 14226
- Sales: 716-614-1900
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Jaguar Buffalo
621 Getzville Rd.
Amherst, NY 14226
- Sales: (716) 831-3100
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Northtown Chrysler Dodge Jeep Ram FIAT
2020 Niagara Falls Blvd
Tonawanda, NY 14150-5545
- Sales: (716) 616-3299
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Land Rover Buffalo
621 Getzville Rd.
Amherst, NY 14226
- Sales: (716) 831-3100
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Northtown Volkswagen
3800 Sheridan Drive
Amherst, NY 14226
- Sales: 716-926-8710
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Northtown Volvo Cars Buffalo
8135 Main Street
Williamsville, NY 14221
- Sales: (716) 795-8657
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incard
1135 Millersport Highway
Amherst, NY 14226
- Sales: 716-839-4600 x 176
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Northtown Hyundai
3675 Sheridan Drive
Amherst, NY 14226
- Sales: 716-992-6536
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Northtown Kia
3900 Sheridan Drive
Amherst, NY 14226
- Sales: (716) 217-2390
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Northtown Lexus
3845 Sheridan Drive
Amherst, NY 14226
- Sales: 716-614-0500
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Northtown Mazda
3920 Sheridan Drive
Amherst, NY 14226
- Sales: 716-217-2392
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Porsche Buffalo
8135 Main St
Williamsville, NY 14221
- Sales: 716-795-8692
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Northtown Preowned
1035 Millersport Highway
Amherst, NY 14226
- Sales: 716-745-4574
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Northtown Subaru
3930 Sheridan Dr
Amherst, NY 14226
- Sales: 716-992-6547
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Northtown Toyota
1135 Millersport Highway
Amherst, NY 14226
- Sales: 716-926-4191
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Loans OK
Amherst, NY 14226
- Sales: 716-302-5123
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Loans OK Sheridan
3900 Sheridan Drive
Amherst, NY -
Loans OK Tonwanda
2020 Niagara Falls Blvd
Tonawanda, NY -
Platinum Plus
Amherst, NY
- Sales: 716-442-2839
