Financial FAQs: Answers to money questions we hear most often

We're in the business of helping people get a second chance. At Auto Team Delaware in Wilmington, DE, we offer affordable models of quality used cars like Cadillac, Kia, and Subaru, and then we help you get the kind of financing that makes your life easier every month. We're especially experienced in helping buyers who are struggling with their credit. Let's take a look at some of the things our buyers often want to know. 

Should I finance my car or try to pay cash?

We applaud you if you're trying to avoid debt and just pay cash for a car. The challenge is that, if you wait until you have enough cash for a reliable car, you could be without good transportation for a while. After all, a quality used car usually isn't cheap. If you buy a car with a limited amount of cash, you might not get a reliable one. That could mean a lot of repair bills, so your very commendable attempt to save money could backfire. 

On the other hand, if you get a loan, you can afford to buy a nicer, more reliable used car that will last longer and probably cost less for repairs. If you also make your monthly car loan payments on time, you'll be building your credit and helping to raise your credit score. In other words, for car buyers in Philadelphia, PA or Newark, DE, financing with a loan can actually be the most cost-effective strategy for getting your next car.

What if I have bad credit?

No problem. We specialize in helping used car buyers with bad credit, low credit, or no credit at all. We understand that anyone can have a financial setback, or even a financial crisis. It can be the burden of school loans, the challenge of a job loss, bankruptcy or divorce. We team up with a lot of different lenders, so we have the connections to help you get the affordable financing you need.

How do interest rates work?

The money you pay every month on your car loan is based on what's called APR, or Annual Percentage Rate. It's the per cent, or interest rate, that's used to calculate your monthly payment. The lower your APR, the lower your payments. Your APR, in turn, is based on how good your credit score is. If you have really good credit, you'll get a lower APR, and that will mean a more affordable payment every month. 

So how do you get a lower APR?

As we mentioned earlier, the better your credit score, the lower your APR for loans. You can raise your credit score by being wise about your finances. Spend your money carefully, looking for deals and discounts. Keep your monthly expenses below your income. Try to avoid debt because it can keep you awake nights and it definitely won't help your finances. Make every payment on time and your credit will rise while your APR drops. 

Auto Team Delaware: Home of affordable cars, affordable financing

We help people from West Chester PA and New Castle DE get quality used cars, trucks and SUVs that fit their budget. If you're having a tough time financially, you're just the person we want to help. Sit down with us, tell us about your situation and what you'd like to accomplish. We have attractive used cars from Cadillac, Kia, Subaru and other great brands and we can help you get the loan you need to buy them at Auto Team Delaware.