When done responsibly, Jaguar financing can be a valuable tool for car buyers. You can own a stunning Jaguar car or SUV by making comfortable monthly payments. Our financial experts at Jaguar Northfield are highlighting a few common mistakes that we see to help you avoid them.
Opting for a Long Term
It can be tempting to stretch out your loan, which gives you lower monthly payments. However, a longer term also increases your chances of having negative equity in your vehicle. This is also known as being upside down in your loan or owing more for your vehicle than it is worth. If possible, aim to limit your loan term to four years or less.
Not Making a Down Payment
A down payment isn’t required for every buyer, although it is strongly encouraged. In fact, experts recommend that you make a down payment of at least 20 percent. This limits how much you have to finance, which reduces how much interest you’ll pay on your loan. Plus, it also helps counteract the negative equity that all new vehicles experience during their first year.
Skipping GAP Insurance
When you finance a new vehicle, Guaranteed Asset Protection (which is also known as GAP insurance) is extremely beneficial. If you suddenly face a total loss, either by an accident or theft, your insurance will only pay you the estimated market value of your vehicle. GAP insurance is designed to help cover the difference between your vehicle’s value and the amount that you still owe on your loan.
Apply for Jaguar Financing in Northfield, IL
You can easily apply for Jaguar financing by answering a few quick questions. We can get you approved for a new loan in no time at all. Visit Jaguar Northfield to get started today!
