Finance

Car Financing Explained

HOW DECISIONS ARE MADE FOR AUTO FINANCING:

At Richard Lucas Subaru, we pride ourselves on transparency throughout the car buying process, including the financing process. Here we can explain few of the questions you may have before making a purchase. These decisions are based on these main factors:

• Vehicle selection: Price, Model year, and Mileage
• Application information: Employment, Residence, and Income
• Credit history: Information contained in your credit report
• Down payment: Trade equity and Cash down

How your monthly payment is determined:
Your monthly payment is determined by three major factors listed below in order of impact: Amount financed Term or length of contract Annual Percentage Rate (APR)

Credit scores explained:

• Credit Scores are calculated from many different pieces of data. Your FICO score is based on these following factors.

• Identifying Information: Your name, address, Social Security number, date of birth and employment information are used to identify you. These factors are not used in credit scoring. Updates to this information come from information you supply to lenders.

• Trade Lines: These are your credit accounts. Lenders report on each account you have established with them. They report the type of account (bankcard, auto loan, mortgage, etc), the date you opened the account, your credit limit or loan amount, the account balance and your payment history.

• Credit Inquiries: When you apply for a loan, you authorize your lender to ask for a copy of your credit report. This is how inquiries appear on your credit report. The inquiries section contains a list of everyone who accessed your credit report within the last two years. The report you see lists both "voluntary" inquiries, spurred by your own requests for credit, and "involuntary" inquires, such as when lenders order your report so as to make you a pre-approved credit offer in the mail.

• Public Record and Collections: Credit reporting agencies also collect public record information from state and county courts, and information on overdue debt from collection agencies. Public record information includes bankruptcies, foreclosures, suits, wage attachments, liens and judgments.

​ ​ Credit Reporting Agencies: To get more information on your Credit history and score, contact the 3 major credit reporting agencies. Each one is required to provide a free credit report annually. TransUnion: Site: www.Transunion.com 1-855-681-3196 Experian: Site: www.Experian.com 1-888-397-3742 Equifax
Site: www.Equifax.com 1-800-465-7166

What to Bring to the dealership:

• Valid driver's license
• Proof of Insurance
• Down payment
• Title to trade or lien payoff letter
• State registration
• Proof of Income Proof of residence