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credit score buying a car

Dealership Events, Money Matters

Financing rates depend on more than your credit score

February 12, 2010
How long do you have to do something, to be considered an expert? Or at least more knowledgeable than the average woman (or man)! I’ve mentioned him before, and I will mention him again: Greg Kurz is an expert in the McCarthy financing department. So I asked him about financing rates — how are they determined? People are under the impression that their financing rate is determined solely by a number … your credit score. But this is oh so wrong! So what else decides your financing rate? “Rates are determined by credit, carry (what you trade in), length of term (for your loan), previous car loan experience, income, debt to income and loan to value,” said Kurz. {Not sure what all of these terms mean? Check out Bloomberg’s Financial Glossary.} “Banks want to know that you’re willing to participate with some money of your own,” said Kurz. And that means financing a vehicle is going to take longer than 15 minutes or a quick signature. Is there any part of financing your car that confuses you? What questions do you have about rates or credit scores? Send me your questions and I’ll get them in front of our expert! IMG_0472-645x483