Financing FAQs

Financing FAQs 

Financing a new-to-you car can be daunting, but at Subaru of Naples we're here to help. Use these frequently asked questions to get started in figuring out the ins and outs of financing.

 

What is a car loan?

A car loan is the most common way of purchasing a vehicle. It's when a buyer borrows money from a lender like a bank or credit union and pays them back over time.

 

What is interest?

Almost every car loan or loan of any type will come with interest, an additional amount of money that the buyer must pay. This is how the lender makes money on the deal. Interest is calculated by a percentage of the loan itself, but that percentage varies depending on things like the buyer's credit score.

 

What is a credit score?

A credit score is a number that reflects a person's financial history. It's used by lenders to determine whether that person will be a reliable borrower.

 

What makes up a credit score?

Credit scores are calculated by several things. One of the biggest factors is payment history, which looks at whether a person has made payments on time and been able to pay off their debts. Other contributing factors are the number of credit sources a person has, the ratio of debt to available credit, the length of credit history, and opening new sources of credit. 

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