
Many questions arise when it comes time to buy or lease a vehicle, especially if it’s your first time around. After all, a new vehicle may be the first big expense you take on. It’s a good idea to prepare yourself from the outset so you’ll know exactly what to expect before you make this financial commitment. To help you make sense of the process, we’ve gathered the following auto finance tips with the help of Mike Kane, Vice President of Consumer Credit Operations at Ally Financial.
Create a Budget (and stick to it)
Before you get into the nitty-gritty details of your vehicle financing, you’ll want to have a good idea of how much you can afford to add to your budget. HowStuffWorks.com recommends making a detailed list of your monthly expenses to see how your monthly auto payments would fit into the mix. You should have enough wiggle room to be comfortable, keeping in mind that your auto expenses aren’t limited to your monthly payment. You should also leave room for expenses such as maintenance, insurance, gas, oil changes and tires.
Do Your Homework
First things first: When you make the decision to buy or lease, it’s time to do some research. There are many resources and free online toolsÂâlike payment calculators or vehicle valuation guidesâthat can help you when it’s time to negotiate with the dealer.
“To make wise decisions, it pays to understand the tools available to educate yourself on financing a vehicle,” says Kane. “The Internet has made it easy for shoppers to access these tools, which can help you get the most for your money during the financing process.”
Consider Your Payment Options
When you’re thinking about how you’ll pay for your new car or lease, you’ll want to know all of your options so you can choose what works best for you. Your choices range from paying in cash to applying for a loan to negotiating a retail contract or lease through a dealership. When financing the purchase of a vehicle, remember that the total amount you pay during the life of the contract will depend on several factors, including the cost of the vehicle, the amount you choose to finance and the annual percentage rate (APR). To learn more about your available options, contact your local dealership.
Determine the Length of Your Contract
A key component of your financing contract is the length of the term, which can typically range from two to six years, or longer. However, according to Edmunds.com, the longer you take to pay off your car, the greater the amount you’ll pay in financing charges. Yes, your payments may be lower, but your total cost to finance will increase. The length of your retail contract may also impact your options to trade in or sell your vehicle, since there’s likely greater demand for a five-year-old car over a seven-year-old car. The most important thing you can do, however, is to choose the terms that best fit your financial situation.
Don’t Be Afraid to Negotiate
According to Kane, the terms of your financingâsuch as the APR, price of the vehicle, down payment, monthly payment amount and termâmay be up for negotiation. It doesn’t hurt to ask your dealership about any incentives they offer, such as cash rebates or low APRs.
For more auto-related financial information and for free resources such as a budget worksheet and an auto finance calculator, visit http://www.allywalletwise.com.
Remember, vehicle financing is not a “one-size-fits-all” transaction. It’s a process by which you make a series of choices to get the most for your money. Improving your financial knowledge can only serve to help youâand your pocketbookâin the long run.
Comment on this article
Comments
Anonymous on January 4, 2015 at 3:59am
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jdcurtis1 on May 24, 2017 at 2:05pm
what instrest rate can I get on a 2010 or 2011 jeep wrangler for 30000 dollars
Ally on June 2, 2017 at 4:15pm
Thanks for your interest! As a first step, please visit your local dealership to determine whether you qualify for financing through your dealership and Ally. You can find a dealer near you using Ally’s Dealer Locator: https://www.ally.com/auto/dealer-locator/
Naeema T. on July 5, 2017 at 9:17am
I'm having trouble paying my new car payment i need to call can you please send me the phone number thanks
Ally on July 5, 2017 at 9:43am
Hi Naeema, please give us a call at 1-888-925-ALLY (2559) and a team member will be happy to assist you with this.
Drew I. on August 4, 2017 at 12:50pm
Just leased 2017 Kia for 24 months. Payments low and only $1000 down. When buying you take hugh loss on trade if its been redesigned or in a collision. Wait till buyers of 2017 Sonata, Camry and Accord discover this on trade or resale in the next few years. Leasing is the way to go. If you need high mileage just prepay. I am driving an Optima for $210.00 a month with 24K.
Ally on August 7, 2017 at 10:10am
Hi Drew, thanks for sharing your thoughts!
Regina A. on October 3, 2017 at 6:35am
Hello Ally, How do I apply to refinance my car with you all.
Christian C. on January 19, 2018 at 4:46pm
Hi I recently put an application for a loan that I was going to get in Pennsylvania that falling through I was wondering if I could still use the app or speak to somebody to get approved for a used vehicle
Ally on January 22, 2018 at 11:02am
Hi Christian, we recommend that you talk with your local dealer to determine if you qualify for financing through your dealer and Ally. You can always feel free to give us a call at 1-888-925-2559 for further assistance!
Rich on February 6, 2018 at 6:34pm
Hello, I have a vehicle financed through Ally and would like to know if you offer motorcycle financing. Thank you, Rich
Ally on February 21, 2018 at 12:19pm
Hi Rich, motorcycle financing is not currently in the pipeline. We'll pass your request for that feature along and keep the community updated if anything changes!
Austin on August 16, 2018 at 9:06pm
I have some questions
Janet H. on October 22, 2018 at 2:19pm
Hi, I have a five year auto loan, two years almost paidin November so a total of three years left. My question is my interest rate is through the roof and I'm getting letters in the mail saying I'm paying to much and go with a different company?? How do I refinance my loan for a cheaper rate?? Thanks, Janet
Val on October 25, 2018 at 4:28pm
I called today to find out an interest rate for buying out my lease. The person wasn’t helpful so I ended up financing thru dealership. Is it to late to find out if I can finanace with you to see if I can get a better rate? I have an excellent credit rating and have 3 accounts with ally at this time.
Ally on November 1, 2018 at 10:42am
Hi Val, we recommend that you talk with your local dealership to see if you qualify for financing through Ally and your dealership.
Scott c. on January 21, 2019 at 6:58pm
I already have an account with ally. I was wanting to get another truck, but I don’t want to go through the dealership to get another loan. The finance managers at all dealerships are predatory. I want to go in already having secured finances. Is this possible
sharon on January 22, 2019 at 12:46pm
If I can pay off loan this year for my car will there be a penalty financial fee
Ally on January 22, 2019 at 1:20pm
Hi Scott, we don't currently offer auto financing direct to consumers. To finance your vehicle with us, the conversation starts with your local dealer. You can check out all the dealers that offer Ally financing with our Dealer Locator tool: https://www.ally.com/auto/dealer-locator/
Ally on January 22, 2019 at 4:25pm
Hi Sharon, please give us a call at 1-888-925-2559 or chat with us online at ally.com so a member of our team can look into your specific account and discuss further.
Refinancing on April 25, 2019 at 5:53pm
Does ally do refinancing on auto loans?
Ally on May 3, 2019 at 1:17pm
Yes! Clearlane, a brand of Ally, connects consumers with lenders to help refinance their current vehicle. Visit clearlane.com/refinance to learn more.
Jeanne P. on June 3, 2019 at 10:16am
We currently have an auto loan through ally we’re looking for a personal loan to clear up some bills
Ally on June 3, 2019 at 4:11pm
Hi Jeanne, thank you for being an Ally Customer. We don’t currently offer personal loans, but we do offer home loans and auto financing. You can learn more about all of our products and services at ally.com!
Angel on July 30, 2019 at 7:38am
How Gould I paid more for the principle of the balance of the car example I paid $380 month I what to paid $100 months more for I Gould pay the car faster and save in financing
Ally on July 31, 2019 at 10:33am
Hi, if you’ll give us a call at 1-888-925-2559, our team will be glad to look into your account directly and discuss your options further!
Tyrone C. on August 2, 2019 at 1:23pm
I would like to refinance my auto car loan
Ally on August 9, 2019 at 8:08pm
Hi Tyrone, if you have questions about your existing Ally financing please give us a call at 866-677-8630. If you would like to refinance another loan please visit clearlane.com/refinance to learn more.
David b. on November 8, 2019 at 11:58am
Carfax has a car I'm interested in and I need requirements that ally needs to be financed .I already have an existing loan with ally .
Sonia O. on November 15, 2019 at 3:21pm
I have made a down payment of $5000 for a car in another state. It’s been two weeks and I have yet to receive the vehicle. I called the dealer and he says he can’t release the vehicle until he get paid from Ally bank. This is very unreasonable and borderline illegal. I asked to receive my down payment and was told I cannot get it back. Please explain.
Ally on November 18, 2019 at 3:43pm
Hi David, if you’ll give us a call at 1-800-545-1960 one of our team members will be more than happy to help answer your questions.
Ally on December 3, 2019 at 4:39pm
Hi Sonia, we hear your frustration. If you’ll give us a call at 1-800-545-1960 one of our team members will be more than happy to help assist you.
Victoria L. on December 23, 2019 at 6:22pm
Does Ally offer payment protection if you're temporarily disabled and can't make your payments? If so what's covered, how is it listed or named on the financing contract? Thank you.
Ally on December 30, 2019 at 12:44pm
Hi Victoria, to learn more about extension options, and whether you may qualify, please contact us at 1-888-925-2559.
Jenny M. on February 16, 2020 at 7:28pm
Good afternoon, my name is Jenny and I have a vehicle credit with you from a Honda Accord, year 2019. I am writing so you can help me with the voluntary return of my vehicle, since I have been trying to return it voluntarily for about a month and I have called multiple times without having any help in this regard. Apart from that at first I asked them to help me with the reduction of the value of the fee and they always tell me that I do not meet the requirements for that purpose. For this reason and for my financial situation that is not right, I better decided to make the voluntary return of my vehicle. I request please initiate this procedure, I communicate by this means since calling is something difficult, generally they are not available. I need to give a solution to my situation. Thank you.
Ally on March 2, 2020 at 2:09pm
Hi Jenny, if you’ll send us an email to allycommunity@ally.com with your full name and phone number, we’d be happy to have a team member reach out to you directly to assist further.
James m. on March 23, 2020 at 9:06am
I would like to see about re-financing my car loan. I currently have a loan with Toyota financing and owe about $39000. Thank you.
Ally on March 26, 2020 at 6:42pm
Hi James, if you have questions about your existing Ally financing please give us a call at 888-925-2559. If you would like to refinance another loan please visit clearlane.com/refinance to learn more.
Yoan M. on April 1, 2020 at 11:17am
Good morning, I am writing to you because I would like to know how I could postpone my car payment, because I would be out of work due to the coronavirus issue.
Ally on April 1, 2020 at 11:18am
Hi Yoan, we’re committed to supporting our customers during the COVID-19 crisis. Existing Ally Auto customers can defer their payment for up to 120 days – you can do so online at ally.com/auto – just log in with your username and password. You can also learn more here: https://www.ally.com/coronavirus-response
Todd on April 16, 2020 at 10:50pm
Can I apply for financing separately with ally then shop for a car on my own? I want to lease. Is this possible?
Ally on April 17, 2020 at 12:46pm
Hi Todd, you’ll have to visit your local dealership to determine whether you qualify for financing through your dealership and Ally. You can find a dealer near you using Ally’s Dealer Locator: https://www.ally.com/auto/dealer-locator/
Terrell on May 19, 2020 at 10:07pm
Trying to lower payments but don't know how so need help
Yahya O. on June 2, 2020 at 8:27am
Hi I want to check if I want to transfer an auto lease contract is it possible currently the contract is less than 12 months.
Ally on June 2, 2020 at 9:04am
Hi Yahya, if you’ll give our team a call at 1-888-925-2559 or chat with us online at ally.com, a team member would be happy to look into your specific account further and advise.
Laurie on June 25, 2020 at 6:14am
I would like to know what my payment will be for a 14,000 jeep Sahara
Alison N. on June 26, 2020 at 5:15pm
Would like to refinance my car loan. What would be the interest rate for 5 and 4 year loan. Plus is the new monthly Payment?
Ally on June 27, 2020 at 1:45pm
Hi Alison, if you have questions about your existing Ally financing please give us a call at 1-888-925-2559. If you would like to refinance another loan please visit clearlane.com/refinance to learn more.
Lester m. on July 28, 2020 at 2:05pm
Do you all do reference on other loans
Betty w. on August 1, 2020 at 11:48am
I want to get my son g/f car out of my name. Is there way we get it out of my name?
Ally on August 1, 2020 at 12:13pm
Hi Betty, if you’ll give us a call at 1-888-925-2559, one of our team members will be happy to discuss your situation further and help advise.
Melkamu on January 16, 2021 at 8:19pm
Hi do you guys finance commercial trucks
Daniel on January 29, 2021 at 5:55pm
How can I refinance my vehicle threw ally financial?
Anthony O. on February 23, 2021 at 11:41am
wanted to know if it is possible to get my caroan refinanced.
Monica T. on April 16, 2021 at 10:01pm
Would like to purchase a car from a private owner how does that work if I need financing
Donnie B. on August 2, 2021 at 1:50pm
An auto loan application has been submitted by dealer but I have not received adequate replies from them. How can I find out the status of the application?
Ally on August 2, 2021 at 1:53pm
Hi Donnie, if you'll give us a call at 1-888-925-2559, a team member would be happy to look into this further and provide an update.
jean l. on February 13, 2022 at 5:02pm
refinance my car
Ally on February 13, 2022 at 5:03pm
Hi Jean, thanks for reaching out. Please give us a call at 1-888-925-2559, so we can assist further.