Our Lexus financing team is here for you at every step of your journey, including helping you avoid common mistakes. Choosing the wrong term lengths, not putting enough money down, and not checking your credit score are rookie mistakes that can have disastrous consequences. Learn how to avoid these missteps with Keyes Lexus.
Choosing the Wrong Term Lengths
You might be tempted to opt for shorter financing terms so you can pay off the vehicle quicker, or longer terms to lower your monthly payment. The former often requires very high credit, while the latter means you pay more in interest. Opt for a balanced term length, usually between three to four years, for the best results.
Not Putting Enough Money Down
Some drivers neglect the down payment and put little or even no money down on their vehicle at signing. This is a mistake, as it means you’re ultimately paying more in the long run every month. Down payments are applied to the principal, meaning they reduce the amount calculated for monthly payments; we recommend putting down at least 20 percent of the purchase price.
Not Considering Your Credit Score
Before you begin applying for Lexus financing plans, you need to make sure that you know your credit score and how applying will affect it. You should always check your credit report before buying a new car, as this will help you determine what types of terms you’re eligible for. We’re required to check your credit score before financing a car to you, and this credit check will be reported to bureaus.
Avoid These Lexus Financing Mistakes in Van Nuys, CA
We’re ready to help you start your Lexus financing journey confidently, whether it’s your first car or you’re a veteran driver. Contact Keyes Lexus today to explore your financing options with our expert team.
