In conjunction with Federal Pacific Auto Finance, we’ll help you get there.
Financing a vehicle is exciting. It’s also a big financial commitment, and most people will need to secure financing to get into a new vehicle. There are a few things you should know such as the ability to borrow money is based upon personal credit history. The better your history, the easier it is for you to borrow. We are here to help.
First things first.
Before you shop for a vehicle, there are a few things you’ll want to consider:
- Before you make any decisions, it’s important to decide how much you can comfortably afford to spend on a payment each month.
- Use a car budget calculator (like the one on -link to the calculator?-) to help with your buying decision.
- Understand that your credit history will affect the financing capability.
- Consider a co-signer if you are new to financing.
- A co-signer with good credit can help get you approved for a vehicle loan and you can begin to build your own positive credit history.
- Remember you will also need auto insurance. Insurance when financing a vehicle is compulsory, we set this up for you.
At the dealership:
Bring your valid driver’s license. You will need to provide the dealer with your date of birth, and information about your income and employment to complete your credit application.
On Selected models (See more in our Offers Tab), 2.9% interest for 12 months only and 120 days deferred first repayments options available.
Bring your business license, driver’s license. You will need to provide the dealer with your date of birth, and information about your income and employment to complete your credit application.
On Selected models (See more in our Offers Tab), Business apps only, NO DEPOSIT REQUIRED, 2.9% interest for 12 months only and 120 days deferred first repayments options available.
Be prepared to thoroughly read the retail finance agreement carefully before signing. Bring your co-signer if needed. Remember to be patient. This is a serious financial decision so expect the process to take a bit of time. Although we are faster and easier than competition.
When it comes to financing a vehicle, one size does not fit all. Ultimately, you have to decide which financing option is the best for you. Here’s some key information to help you.
Financing is considered installment-term financing, which means that the purchase price of the vehicle is paid over a period of months. The vehicle’s title is in Federal Pacific Auto FInance name, and once the vehicle loan is paid in full, we transfer the ownership, you own it free and clear. Payment terms are agreed upon in a retail contract. Terms are from 12 to 60 months.
A minimum of 20% of the selected vehicle value deposit is required from all individual applications.
To reduce your monthly payments you can take advantage of our BALLOON payment option. How does it work and are you eligible? Ask one of our consultants for more information!
Explained for you
What is a Balloon payment option and what benefits does it have?
A balloon payment option reduces the rate that your principal is repaid and has the following features:
- Lower monthly repayments.
- Easier on current cash flows.
- But a higher amount of interest paid over the term of the loan.
- And a large final payment to settle at the end of the term:
- 3 year loan – 30% of the original loan amount.
- 4 year loan – 25% of the original loan amount.
- 5 year loan – 20% of the original loan amount.
An $80,000 loan with interest rate of 14% per annum over a 3 year term
Example A: No balloon payment.
There will be 36 equal monthly repayments of $2,782 per month
Example B: A 30% balloon payment ($80,000 x 30% = $24,000)
There will be 35 equal monthly repayments of $2,295 per month and the 36th payment of $24,000.
The customer then has a number of options available:
- Option 1: Pay balloon off in cash and own the vehicle.
- Option 2: Apply to FPAF for a new loan to settle the balloon repayment over a term of 12, 24, 36 months.
- Option 3: Trade vehicle in to Ford Hyundai Samoa. The trade in amount will be used to fully settle FPAF loan and the balance (if any) will used as a full/part deposit on a new Ford/Hyundai vehicle.
- Option 4: Return vehicle to be sold by Ford Hyundai.
- At a guaranteed price negotiated at time of delivery, or
- Sold on your behalf by Ford Hyundai who will take 10% Consignment fee.
Any proceeds left after FPAF loan is fully settled will be returned to the customer.
What are the benefits?
- Full control and independence over your car’s condition.
- No limit on mileage.
- Full ownership of your vehicle after loan payoff.
- Factory warranty to cover major repairs.
- Ability to customize your vehicle.
- Variable contract lengths to fit your needs.
How much do I pay?
When you finance your vehicle purchase, your monthly payments will be determined by the vehicle’s sale price, amount of your down payment and trade-in value (if applicable), interest rate and length of term.
How long does my finance contract last?
Usually 12 to 60 months
How many kilometer’s can i drive my vehicle?
There are no restrictions, however, more kilometer’s driven tends to lower resale or trade-in value
Can I customize my vehicle?
Add accessories to your vehicle at any time, however certain accessories that affect vehicle functions may void manufacturer’s warranty