subject: Baltimore Honda Dealers: Financing Questions You Must Ask [print this page] Baltimore Honda Dealers: Financing Questions You Must Ask
The majority of consumers buying a new or used vehicle will finance the purchase of that vehicle. In an ideal world, paying cash would be preferable however few people have the financial resources to do so. Buyers have several options when financing a vehicle through Baltimore Honda dealers. To get the best deal and predict affordability, ask the following financing questions when shopping for your next vehicle.
Interest rate- Beyond the purchase price, the next item of importance is the interest rate on the loan. Buyers are reminded that interest rates are determined by credit history, therefore individuals with better credit are offered lower interest rates. The amount of interest applied to your unpaid balance can greatly affect how much you end up paying for your vehicle.
Penalties- MD Honda dealers will explain all of the terms associated with your loan. Buyers are encouraged to ask questions if they are uncertain of these terms or need further information. This includes questions regarding payment amount, additional charges and potential penalties that may be applied to the loan.
Credit insurance- Some Maryland Honda dealers may require credit insurance for buyers who are financing their vehicle. Credit insurance is an insurance policy which provides security to the lender that the loan payment will be paid regardless of situations which would otherwise result in non-payment. Borrowers are responsible for paying the insurance premium and as such should know in advance if this type of insurance is required to secure the loan. In most cases Honda dealers do not require this type of insurance, however it is best to know in advance if you will have additional expenses.
