Affordability
Your choices when pricing a vehicle.
Remember you have choices when it comes to how much you finance. Before you make your purchase, it's always a good idea to understand the following:
- The right time to buy
- Low Annual Percentage Rate (APR) and incentives
- How to calculate incentives
- How down payments work
- How additional fees affect payments
The best time to purchase a vehicle.
Is it model year clearance time? After the new year? On your birthday? Actually, the best time to purchase a new vehicle is simple: Before you need it.
So, don't be caught without all the facts when you need a vehicle. Make sure you do your research and know all your options.
Researching available financing incentives.
Find out if there are any special financing rates on the vehicle, or if there are any lease incentives currently in place. Once you find out about any available incentives, you can choose between the following options:
- Special low APR financing
- Cash rebates
- Or sometimes a combination of both
Choosing between a low APR and a cash rebate.
Should you go with a low APR? Is the rebate better for you? Or, should you consider a low APR combined with a cash rebate offer? The simple answer: It depends.
Try calculating your payment using both forms of incentives. That way, you can make a decision that's right for you—and your budget. And, if you're still not certain whether you want to finance or lease, try comparing the combined offers and incentives on each.
For help with calculating incentives, take the GMAC SmartEdge Tutorial.
More about low APR: Down payments.
Keep in mind that special low financing rates may require a down payment. If your particular retailer or manufacturer incentive does, you'll probably want to have your payment figured a few different ways:
- The cash down payment and special low finance rate.
- The cash down payment plus rebate.
- The rebate as your down payment.
Here are some additional things to know about down payments:
- The more you put down, the less your monthly payment. Once you determine what you can afford monthly, you'll know how much you have to put down to get to that figure.
- Putting nothing down comes with a price. But it's spread out over time.
- Putting a lot down lowers your monthly payment. But you have to come up with the cash up front.
Calculating additional fees.
Keep in mind that you're responsible for the tax, title, license, retailer and registration fees on your new or used vehicle. You can either pay in cash at delivery or have the fees included in your finance contract or lease agreement. Remember though, if you choose to roll them into your agreement, your monthly payment will increase.
For help knowing even more of the facts about pricing vehicles, visit the GMAC SmartEdge website.
The cost of credit expressed as a yearly rate.
In a financing transaction, the amount you put towards your vehicle purchase. Special low financing rates may require a minimum down payment.
A special payment from the manufacturer to the customer towards the purchase or lease of a new vehicle. Also called a "Cash rebate."
A special payment from the manufacturer to the customer towards the purchase or lease of a new vehicle. Also called an "Incentive."
Depending upon where you live, one or more taxes may be levied on your vehicle. Sales tax, use tax, property tax, and other government fees might be applicable, so be sure to talk to your local department of motor vehicles or vehicle retailer if you have tax questions.
A legal document that ownership. Depending on your state of residency, the fee for the title and the time in which you must obtain title may vary.
Registration fees generally include any use taxes, license plate costs, and other vehicle fees assessed by your state government. Registration fees are determined by your state department of motor vehicles, not automakers or vehicle retailers.
In a financing transaction, the amount you put towards your vehicle purchase. Special low financing rates may require a minimum down payment.
Your trade-in value is how much your current vehicle is worth. This value may be higher or lower depending on the condition of your vehicle, equipment, and local market conditions.
Tool commonly used to measure expenses against income. A written plan that helps people manage their money.
An online financial education center available through GMAC that helps you manage your credit, live within your budget, and get SmartEdge certified.
Manufacturers often offer several tiers of option packages on a particular vehicle line. These tiers, or "trim levels," allow customers to choose options that best suit their requirements and budgets.
You can enter any Annual Percentage Rate (APR) you wish. Keep in mind though, you have to qualify for financing, and the APR you enter may not be available.
