Financing Your Ram 1500 in Milwaukee, WI
Financing truck is a great option for buyers who can’t or don’t have time to save up the money for one. Financing, or paying for a truck with a loan that you pay back over time, isn’t a complicated process if you know what you’re doing. Whether you apply for a loan through a bank yourself or finance through the dealership, Schlossmann Dodge City is here to help you get the best deal possible on a new Ram 1500.
There are several aspects of financing to consider before you make a final decision. First, you need to make sure that the total amount of your loan is enough to pay off the full cost of the car, minus whatever initial payment you put down. This could include destination fees, the cost of titling, and other fees.
You should also understand loan terms. There are a few typical loan terms—anywhere from three to six years being the most common—and which one you get depends on your credit and how much you can afford to pay per month. A longer loan term has lower monthly payments, but ultimately you pay more in interest. Conversely, a 3-year loan has much higher payments, but the overall cost is lower. The better your credit is, the longer the loan term you can qualify for.
Also consider APR, or annual percentage rate—also known as the interest rate. If you’re buying used, your interest rate will be higher than for a new truck, but either way, you should shop around for a low one so you don’t end up paying a lot of money in interest. You should also look for a loan that doesn’t have a pre-payment penalty or include interest in the monthly payment—this is a common tactic that makes sure you pay all of the interest that would build up over your loan period, even if you pay off your car early.