Buying a vehicle is a big decision. Make, model, color and cost often dominate buyers’ thoughts.

However, financing is one of the most important decisions facing a consumer when purchasing a vehicle. Unfortunately, it is often the most overlooked. Many variables enter into the financing equation including interest rate, incentive options and the repayment term.

Your interest rate will determine how much additional money will be charged to your loan amount. The rate can be derived in two different formats, a variable interest rate that changes periodically, or a fixed interest rate that remains the same for the life of the loan.

For vehicle loans, a fixed interest rate is typically used. Interest rates do vary from lender to lender, so shop around.

Another important aspect to consider when looking for your financing package is dealer incentives. Auto dealers can offer an array of incentive options to consumers when purchasing a vehicle.

Aside from the factory warranty on maintenance or repair, dealers also offer incentives such as cash back, low-rate financing, or a financing deal. However, most dealerships will not offer multiple incentives on the same vehicle, so choosing the right incentive makes all the difference.

Lending institutions also provide an assortment of incentives that can tailor your vehicle loan to your needs. Many companies offer low-interest financing, flexible payment schedules or easy payoff options.
If you currently have a loan and your monthly payments or interest rates are too high, refinancing your loan may be an option. Refinancing allows you to drop your existing high rate auto loan to a lower interest rate or extend your term to lower your monthly payment. The term of a loan is crucial to the amount of repayment per month. If the loan term is shorter, the scheduled repayment amount will be more per month.

Repayment terms vary from lender to lender just like interest rates. Typical vehicle loans have two-to-six year payment terms. Receiving the best financing is definitely as important as getting the vehicle you want at the best price.

Farm Bureau Bank makes your financing decision easy with the same low interest rates for new, used, and refinanced vehicles, variable terms and no application fees. For more information about vehicle financing options from Farm Bureau Bank, visit its Web site at http://www.farmbureaubank.com or call to speak with a personal banker at (800) 492-3276.

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CONTACT WEBMASTER

Florida Farm Bureau Federation
P.O. Box 147030
Gainesville, FL 32614-7030
Phone: (352) 378-1321