Just thinking about getting into a used car loans might come with excitement, as well as concerns. The best way to take away any uncertainty is to provide information. That’s why we’ve shared these most frequently asked finance questions, with answers. So you can understand the process, what to expect, and how easy it is to get into the vehicle you want. If you still have a question that isn’t covered on this page, please contact a Red Mountain Funding loan expert and we’ll provide answers that help.
Most Frequently Asked Used Auto Financing Questions
What if I live out of state?
We can only work with residents of Arizona, but if you live outside of Arizona, apply with our preferred partner here.
What information do you need before I apply for a loan?
We’ll ask for much of the same information as you’d expect when applying for any other type of loan, but with much less hassle. Length of current residence, employment, current income, current loans, and will verify each.
How do I find a good rate on my auto loan?
Red Mountain Funding will take the credit history you have, your income, as well as debt obligations and comprise an interest rate that reflects what is fair, based on your overall credit profile and what you can afford. Over time, as your credit improves, we’d be happy to reevaluate and see if refinancing makes sense.
What’s an APR?
The annual percentage rate, known as the APR, is the interest calculated based on a full year. How that breaks down to a monthly payment may differ.
How much loan can I afford?
Each loan applicant is different. What you can afford is not only determined by what we calculate based on your credit history, debt obligations and income (debt-to-income ratio) but what you decide is comfortable for you. For example, if Red Mountain Funding believes you can afford a $10,000 loan paid over a 3-year term, but the monthly payment is too high for your comfort level, we can either extend the timeline of the loan or lower the total loan amount.
What does it mean to be “upside down” on a car or truck loan?
If you’ve been told that you’re upside down in the auto loan of your current vehicle, this can happen, especially if you haven’t owned the vehicle for more than a handful of years. Basically, the loan amount owed is less than the current value of the vehicle. Therefore, you’re upside down. It doesn’t mean you won’t qualify for another loan. Sometimes, we can carry the balance of that loan, onto your next loan.
Can I still get an auto loan if I don’t have good credit?
We take pride in our ability to help people who have had a few bumps in the road of life. Who doesn’t, right? Just ask about our options and we’ll put you on a path to help you improve your credit too.
What auto loan mistakes should I avoid?
Before you apply for any loan, make sure you take a serious look at what your fixed monthly obligations are, such as a mortgage or rent payment, credit card payments, student loans, and medical bills. Then add in household expenses like utility bills, cell phone, groceries, other incidentals and entertainment. From there, consider how these monthly bills may adjust within the next year or two. Now you’ll have a better idea of what you can afford today and tomorrow.
If my credit history is limited or I have no credit, can I still get a loan?
Nobody is born with a credit history. We all have to start somewhere. Red Mountain Funding is happy to give your credit a jump start, whether you’re a college student or at your first job or in the process of cleaning up your credit. We have loan programs to match exactly where you are in life.