If you’ve set your sights on a Jeep, the adventure begins the moment you start your search. The path to purchase may seem tricky, especially if you’re financing a vehicle for the very first time. But here at South Strand Chrysler Dodge Jeep RAM, we’ve simplified the process – and put the fun back in finding and financing your new ride.
To put your mind at ease, our qualified team has compiled a step-by-step guide to Jeep financing. We’ll be here to help from start to finish, steering you toward the best deal possible! We’re conveniently located in Pawleys Island, SC, so come see us today!
What is Car Financing?
The concept of car financing may be daunting to a first-time car buyer, mostly because of the unfamiliar lingo used in auto loan agreements. Below are some key terms and definitions to learn before embarking on your car-buying journey:
Financing
Financing refers to paying for something in installments over a fixed period of time. When you finance a car, your Jeep dealer will lend you the money to purchase the car. In exchange, you pay the dealership (or lender) interest and other fees to borrow the money over a set time.
Down Payment
A down payment is the amount of cash that you will pay upfront to the Jeep dealer near you towards the total price of the vehicle. The larger the down payment, the less money you will need to borrow – and the more affordable your monthly payments.
Interest Rate The interest rate is the additional fee you must pay to borrow money. Each payment you make is split between paying off the balance of the loan principal and the interest. These fees are usually included in your monthly payment.
Annual Percentage Rate (APR)
APR is the total cost to borrow money, adding together interest and other additional fees.
Manufacturer’s Suggested Retail Price (MSRP)
MSRP is the price that the manufacturer recommends car dealers should charge for the vehicle.
Principal
A loan’s principal is the amount you are borrowing to pay for the car, including taxes and fees.
Term
A loan’s term, often expressed in months, is the amount of time during which you must pay back the loan. While longer-term loans mean lower monthly payments, they typically come with higher interest rates – meaning that you pay more over time.
Five Steps to Purchasing Your First Jeep
Whether you’ve got your heart set on a new Jeep Gladiator near you or a reliable, used Wrangler, there are a few things to do before making your dream vehicle a reality. Let’s go through the process step by step!
Step 1: Check Your Credit Score.
When it comes to financing, your credit score greatly impacts your ability to get approved for a loan. Your credit score is a number between 300 and 850, calculated based on five factors:
- Payment history
- Amount owed
- Length of credit history
- New credit
- Credit mix
Your credit score lets lenders know how risky it is to lend you money. For instance, the higher your credit score, the better your chances of obtaining a loan with a reasonable interest rate. Low scores translate to higher risk, making these buyers less appealing to lenders. Determine your credit score and evaluate areas of improvement as needed.
Step 2: Set a Realistic Budget.
Before you kick off the car-buying process, it is important to set a realistic budget. Take some time to look over your finances, including income and expenses, to determine what you can afford to spend on a vehicle. As a general rule of thumb for first-time car buyers, we recommend making a 20% down payment and then dedicating, at most, 20% of your monthly take-home pay to your car payment.
Want to determine your estimated monthly payments on a specific model, like the new Jeep Wrangler for sale? South Strand Chrysler Dodge Jeep RAM has a payment calculator tool that allows you to explore financing options and compare different Jeep models – all online, from the comfort of home!
Step 3: Start Shopping for Your Dream Jeep.
With so many different vehicles, body styles, trim levels, and additional features to choose from, browsing our extensive inventory may leave you feeling overwhelmed. Before you begin your search at one of the car dealerships near you, make a list of the features that are most important to you and your family.
Looking for a rugged off-roader built for tackling the trails? The Jeep Wrangler is equipped for adventure. Love to take road trips or routinely make a lengthy commute? The efficient Jeep Grand Cherokee offers a smooth, comfortable ride. Determine your non-negotiable features and let that be your starting point to finding the perfect Jeep for your lifestyle.
Step 4: Obtain Financing.
Financing your new vehicle at South Strand Chrysler Dodge Jeep RAM is quick and easy, with our simplified process designed to get you back on the road – and on to your next great adventure – in no time at all. Our Auto Finance Center proudly serves drivers in Pawleys Island, SC and throughout the Lowcountry with finance options personalized to fit your needs.
Once we’ve learned more about your financial situation, our team will help you choose between a Jeep lease or loan. If you’re unsure which option is best for your budget, our finance specialists will review both options to ensure your final decision is a well-informed one!
Step 5: Signed, Sealed, Delivered!
Once auto financing has been secured, the final step in the car-buying process is to review and sign. After completing some paperwork, we'll hand over the keys – and watch you cruise off the lot with a great deal and a smile!
Finance Your First Jeep at South Strand Chrysler Dodge Jeep RAM!
With a team you trust by your side, the car-buying process doesn’t have to be stressful! At South Strand Chrysler Dodge Jeep RAM, we offer premium customer service – and a buying experience to match – so it’s no wonder our customers return time and time again!
With a diverse inventory of new, used, and pre-owned cars for sale, our qualified team will help you to find the vehicle that meets your needs, while always keeping your budget in mind. That’s why we offer Jeep lease deals and vehicle incentives that can help make your dream car a reality.
Our team proudly serves drivers in Georgetown, Conway, Socastee, and beyond. We look forward to seeing you – and serving you – soon! Come see us today for a test drive!
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Car Financing