Car Financing FAQ
88. Do you offer financing?
Yes. We work with a few dozen lenders and financial institutions to help you secure a car loan on the cars we have for sale.
89. How does financing a car work?
When you finance a car, you are agreeing to paying for said car for a set length of time (loan term) at an agreed upon annual percentage rate (APR). We will help you get the car loan, the bank will then pay us for the vehicle and you will pay them back in monthly payments. It's all relatively simple and can be done quickly at our Lexington car dealership.
90. Do you have to have a credit check done to buy a car?
If you are financing a car, then yes, we will have to perform a credit check to submit to potential lenders in order to secure the best car loan for you.
91. How are financing terms determined?
Financing terms are determined by the bank, not the dealership and are based on many factors regarding credit worthiness. Aside from credit history and a proven track record of paying back debt as agreed, banks will also look at your debt to income ratio and the amount of financing requested. Other factors will include the age and mileage of the vehicle. Older and high mileage vehicles are generally subject to shorter loan terms and higher APRs while late model and new vehicles are looked at more favorably and generally get longer terms and lower interest rates.
92. What are my payment options?
Once terms are agreed upon and financing secured, your car loan payment options are generally pretty simple and limited. Most commonly you pay one monthly payment for the duration of the car loan but some banks will contract bi-weekly payments. As far as payment methods, depending on the lender, you can pay by check or card by phone, or set up automatic recurring payments directly from your bank account.
93. How are taxes calculated and collected?
Taxes are the most confusing part of a car deal and often vary by state, city, and sometimes even county. Then if a trade is involved, we have to figure out how tax credits are assessed and applied. Fortunately we have some great resources to ensure we figure the taxes correctly and we are glad to show you how they are collected upon request. Taxes are due at the time of signing via one time payment or incorporation into your car loan.
94. Can I get Pre-Approved for a car loan online?
You can get pre-approved for a car loan by clicking HERE. We recommend using the pre-approval link to save you time at the store by letting us secure vehicle financing before you arrive.
95. How much paperwork is in a car deal?
Paperwork on a car purchase varies on a few factors: Cash vs Financing, trade or no trade, single signer or co-buyer. An average car deal consists of a contract, an arbitration agreement, VTR, buyers order, proof of insurance form, "we-owe", power of attorney, and some misc documents.
96. Can I buy a car with cash?
Yes. You can pay for a car in cash, but by federal law, anything over $10,000 requires a From 8300 to be filled out and included with the paperwork.
97. What will my payment be?
Your payments will be determined by the amount financed and the auto loan terms set forth by the bank.
98. How long is the average car loan?
The average new car loan is 69 months for new vehicles and 65 months for used vehicles.
99. How long can you finance a used car?
In some circumstances on almost new used cars we have seen 84 month terms, but long term loans for used vehicles typically go 72 or 75 months. The length of used car loans are determined by age/mileage of vehicle and credit worthiness.
100. How long can you finance a new car?
Long term new car loans typically go 84 months as a max, but over the years we have seen a 96 month car loan and even 120 month car loan before. We typically recommend you select the shortest term loan you can afford to avoid paying the additional interest.
101. What is your lowest interest rate?
This is a tough question as federal rates vary all the time and your car loan interest rate is ultimately decided by your creditworthiness, the vehicle's age/mileage, and if it is a new or used car loan. The manufacturers occasionally announce 0% auto loans for short terms and we have seen used car loans as low at 2.99%. It is important to remember there are a variety of factors the banks used to determine the interest rates and until a bank sends us an approval, the rate is not set in stone.
102. Do I have to have a down payment?
Not always. If not required by the bank, a down payment will lower your monthly payment and help avoid some interest charges. If a down payment is required, the bank will tell us what they are requiring in order to agree to car financing.
103.When is my down payment due?
Your down payment is due before you take delivery of your new vehicle.
104. Can I pay for a car with a check?
Yes, but we first have to verify the validity of it.
105. Can I use a credit card for a down payment?
Yes. You can use a credit card as a down payment for your car, however, charges over $3000 may be subject to 2.5% processing fee.
106. Can I buy a car with bad credit?
Yes. Bad Credit auto loans are available but can take a little longer to secure than other auto loans. When buying a car with bad credit, cash is king and the bigger the down payment the better. A bigger down payment increases the likelihood of securing a bad credit car loan. Co-buyers also help secure financing when your credit is less than great.
107. How do I get a bad credit car loan?
The first step to getting a car loan with bad credit is to fill out our Get Pre-Approved Application and let us go to work for you. The more money or vehicle equity you have the better, as it will give the bank more reasons to approve a bad credit car loan. During the approval process, the bank may ask for proof of residence and proof of income. For these we will need to provide them your last 2 pay stubs and an utility bill with your name and current address on it.
108. Can you get a car loan with no credit?
Yes. Most frequently first time car buyers have little or no credit. It doesn't mean they have bad credit, just very little or none which often results in a 0 score on the credit reports. Similar to a bad credit car loan, first time buyers often increase their success at getting a loan when they have a good cosigner or some money down.
109. How do I protect my investme
Purchasing a car is normally the second biggest purchase, behind a house, that people will make and it is only natural to want to protect your investment. Your mobility depends on a reliable car. We offer several options to protect your investment that include extended warranties (service contracts), tire & wheel protection, paint & fabric protection, and pre-paid maintenance bundles. All of these products can be financed with your vehicle and are designed to help keep your car running great for years to come.
110. Do you offer new & used car warranties?
Yes we do. We offer extended warranties on almost every vehicle we sell that vary from short to long term with varying additional mileage options.
111. Should I buy an extended warranty? Do I need it?
We highly recommend buying an extended warranty. Anything with moving parts can wear out and break down at the most inopportune times causing major inconveniences. Extended warranties enable you to have expensive repairs done quickly with very little money out of your own pocket. For instance, if your motor or transmission were to go bad, you could be looking at thousands and thousands of dollars you would have to pay out of your pocket. If you have a warranty, that repair could be covered for a copay of only $100.
112. What is GAP insurance?
Gap Insurance is an additional insurance policy that covers the gap in your car's value and what you owe on your car in the event of a total loss. If you total your car and owe $15, 000 on it but the insurance company only values your car at $11,000 then you are responsible for paying off the additional $4000 to your lienholder to satisfy the loan. If you have GAP insurance, they will cover that difference for you.
113. Should I buy gap insurance?
Whether or not you should by GAP insurance depends on how you plan to pay for the vehicle. If you pay cash, you obviously don't need it, or if you put 30-40% down, or if you do a short term loan, then you may not always need it. However, if your term is longer than 36 months, or if you put very little or no money down, or carry negative equity to your new loan, then we strongly recommend GAP Insurance.
114. When is my first payment due?
For most car loans, your first payment isn't due for 45 days after you purchase the car, but in some instances, it is only 30 days. Occasionally with CPO or new car incentives, it could be pushed out 60 or 90 days until your first payment is due.
115. Can Warranty, Gap, Maintenance, etc be included in my monthly payment?
Most of the time it can be included in your monthly payment. When banks approve car loans, they will approve and amount for the vehicle purchase and a separate amount for "back end adds", i.e. Warranty, Gap, etc. As long as they approve enough to cover the cost of any protection products you want, it can be included.
116. Can I use my bank or credit union to purchase a car?
Yes. You can secure your own auto loan financing, but oftentimes our dealership's finance department can negotiate better terms with the banks we are sending hundreds of deals to a month too. There can also be cash incentives to using certain lenders the dealerships provide saving you even more money.
117. What does "Lien Holder" mean?
When you get insurance for your new vehicle purchase, your agent will ask you who the lienholder is. The Lienholder is the bank or credit union that is providing the car loan to you. When asked by your insurance company, we can provide you the name, address, and phone number of the lienholder to pass along.
118. How is car loan interest calculated?
Most of our car loans are simple interest car loans and the interest is calculated based on the balance you owe the day your payment is due.
119. Can I pay off my loan early?
Yes. You can pay off your car loan as early as you can afford to. It is important to note that there are a few banks that have early payoff penalties, but we can let you know at your time of purchase all the lienholders stipulations.
120. Can I use a credit card to buy a car?
We do not accept credit card payments for the purchase of a car. You can use a credit card for a down payment though.
121. Can I buy a warranty for a car I already own?
Most of the time you can. It depends on the age, mileage, and condition of your current vehicle and will require an inspection by our service department. If you are thinking of keeping your current car longer than you thought you would, contact our finance department managers to find out how to buy a warranty for your current vehicle.
122. Can I transfer my specialty license plate to my new car?
Do you have a specialty license plate on your car and are worried about losing it when you purchase a new one? Just let us know when you are buying your new car from us and we will note on the registration form that we are transferring your specialty plate to your new vehicle.
123. Do you all handle the registration for me?
Yes. We handle all of the paperwork and trips to the county clerk's office for you so that you don't have to do anything but enjoy your new car.
124. When will I receive my title?
In Kentucky you will typically receive your title 45-60 days after you purchase your car. Some states require the lienholder to keep the title until the vehicle is paid off, and in those states you will receive your title 45-60 after your last payment is made. Edit: The Covid19 pandemic has increased title processing and delivery times.
125. What is Roadside Assistance?
Roadside Assistance is just that, a service that offers stranded motorists assistance if they experience car troubles. Depending on the type of coverage you elect to get, it could cover changing a flat tire, bringing you gas, or giving you a tow to the nearest dealership for repairs.
126. Do you provide temp tags?
Yes. If the vehicle you purchase doesn't have a valid tag on it at the time of purchase, we will put a temporary tag (temporary license plate) on it that will suffice until your new license plate is mailed to you.
127. Can I refinance my car?
Interested in lowering your current car payment? Do you think your interest rate is too high? Or maybe a job change or life circumstance has changed and you can't afford what you once could. Depending on how long you have had your vehicle you may be able to trade out of it to lower your payment or possibly even just refinance it. Refinancing a car you currently own can be beneficial in a few circumstances and may give you the opportunity to lower your interest rate.
128. What is a Co-Buyer?
A co-buyer, also known as a cosigner, is a 2nd person involved in a car loan that promises to pay the loan if the main buyer is unable to. They are as legally responsible to pay off the car loan as the person buying the vehicle.
129. What is a doc fee?
The doc fee, aka documentation fee, is a fee charged by dealerships to cover the cost of preparing, filing, and storing your paperwork. It also covers the costs associated with privacy and identity protection. Doc fees are a part of every deal and non-negotiable per guidelines.