The Finance Process - DO NOT DELETE
The Finance Process
Meeting your new car, used car, or leasing financial needs is what our financing team at Ford of Franklin is all about. By making sure you get the excellent rates, favorable terms, with the service you can find, we strive to go beyond just the approval process, we work hard to keep you satisfied and informed every step of the way.
We’ll make sure you know every important aspect of your financing, and that with our transparent process of getting you the best rates and terms we can, you’ll be informed and in the loop.
How quickly and favorably we get the job done for you depends on the following factors:
- Vehicle: make, model, year
- Personal Information: Income, employment history, length of time in residence
- Credit History: Information from credit reporting agencies
- Down Payment Amount: How much you will be borrowing
Each of these four items goes towards the approval of your final financing decision.
Of course you’ll want to know just how much your monthly investment will be on any new or used purchase, and that hinges on the following factors:
- The amount of your loan
- The length of your loan
- The APR of your loan
The table below shows you how each of these factors affects your monthly investment.
| Total Amount Financed | Number of Months Financed | Annual Percentage Rate | Monthly Payment | Details |
|---|---|---|---|---|
| $17,500 | 60 months | 10.00 | $372 | Standard financing |
| $15,500 | 60 months | 10.00 | $335 | Reducing 10% of the financed amount equates to 10% less in payments |
| $17,500 | 66 months | 10.00 | $346 | Increasing length of loan by 10% equates to a 7% reduction in monthly payment |
| $17,500 | 60 months | 9.00 | $363 | A 10% reduction in interest equates to a 3% payment reduction |
The credit our customers find is strongly based on their credit reports from the major credit reporting agencies. The relative strength of your credit is determined by what these credit reporting agencies have to say about the factors demonstrating your credit health.
Major bench marks for credit are measured in a comprehensive number system with a scale of 0 to 1000. The major benchmarks occur between the numbers of 350 and 850, this is where most consumers will find they land in the credit company’s assessment of risk.
Factors influencing your number include:
- Timely payment history
- Current debt load
- Number of open lines of credit
- Number of recent credit inquiries
- Judgments or liens on file for you
The higher your credit score, the more favorable your financing options will be.
The 3 Main Credit Reporting Agencies
-
Experian:
Web: www.experian.com
Toll-free number: (888) 397-3742 -
Equifax:
Web: www.equifax.com
Toll-free number: (800) 685-1111 -
TransUnion:
Web: www.transunion.com
Toll-free number: (877) 322-8228
These are among the most commonly used terms by Ford Lincoln of Franklin in car financing:
- Amount Financed: The total amount of your loan.
- APR: Also known as the Annual Percentage Rate or the amount of interest you are paying per year.
- Down Payment: The amount of cash and/or the value of your trade in.
- Equity: The difference between how much you owe on your trade in and its actual value expressed as a positive or negative number.
- Finance Charge: How much you will be paying for your loan.
- Retail Installment Contract: The loan agreement between you and the lender which states your monthly payment, the number of payments, and the interest rate you will be paying.
- Simple Interest: The charges for your financing, this is a calculation including the unpaid principal of the loan, how many days there are between each payment, and your annual percentage rate.
- Stipulation: This is any extra documentation or any further actions which will be required in order to complete your loan transaction. A good example of this would be your paystubs or other proof of income.
- Term: This is the total number of months your loan is expected to run.
- Total of Payments: This is the sum total of all payments made once you have completed the terms of the loan.
- Total Sales Price: This is the full cost of your new vehicle, it includes the amount you financed, your down payment, and the finance charges.
- Gross Monthly Income: Also known as GMI or the total amount of money you receive each month before taxes, social security, FICA and contributions to retirement plans are deducted.