Welcome to the Stone Mountain Volkswagen Finance Center

How Finance Decisions Are Made

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When it comes to buying a car at Stone Mountain Volkswagen, we pride ourselves in providing our customers with complete transparency throughout the entire process, especially with regards to financing. To ensure you fully understand how our lenders make their financing decisions, we present these four important factors used in the decision making process:

1. Vehicle: Make, model, year, mileage, and cost
2. Personal Information: Income, length of employment, and length of time at residence
3. Credit History: The information contained in your credit history
4. Down Payment: How much you have in trade equity as well as cash

In order to be certain you will be given the best financing offer, the vehicle you choose should be one that is within the realms of your budget. You should also be prepared to come up with as much money for a down payment as you can. Simply meeting these two qualifications is likely to affect the outcome of your loan application. They will also help to improve the financing you are offered, and in the end, lower your monthly payment.

Three Factors which Will Affect Your Monthly Payment

At Stone Mountain Volkswagen your monthly payment calculation is based on these three very important factors, which are listed in the order of importance:

1. The amount of your loan
2. How many months you finance your car for.
3. Your annual percentage rate (APR)

What your credit score means

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As we all know, the various credit reporting agencies are responsible for creating your credit score. Although each of them has their own criteria, they are for the most part very similar. Your credit scores are created based on a number of statistical models which have been created to help lenders predict the amount of risk associated with major purchases such as houses, cars, and of course credit cards.

• By the Numbers: Credit scores typically run between 350 and 850
• Risk Assessment: As a rule the closer the score is to 850, the lower the risk is thought to be.

Several different factors contained in your credit history are used by the credit reporting agencies to help determine your score. Each of these factors has its own level of importance. Here are some of the more commonly used factors:

• Payments: If they’re made in a timely fashion and if you have a number of late payments.
• Debt Load: How much debt you have and the type of debt.
• Credit Accounts: How many open lines of credit do you have and how old are they.
• Credit Inquiries: The number of recent hard credit inquiries shown in your credit history.
• Public Records: Do you have any current judgments or liens in place.

The 3 Main Credit Reporting Agencies

• Experian:
• Web:www.experian.com
• Toll-free number: (888) 397-3742
• Equifax:
• Web: www.equifax.com
• Toll-free number: (800) 685-1111
• TransUnion:
• Web: www.transunion.com
• Toll-free number: (877) 322-8228

Terminology Used in Car Financing

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These are among the most commonly used terms by Stone Mountain Volkswagen in car financing:

• Amount Financed: The total amount of your loan.
• APR: Also known as the Annual Percentage Rate or the amount of interest you are paying per year.
• Down Payment: The amount of cash and/or the value of your trade in.
• Equity: The difference between how much you owe on your trade in and its actual value expressed as a positive or negative number.
• Finance Charge: How much you will be paying for your loan.
• Retail Installment Contract: The loan agreement between you and the lender which states your monthly payment, the number of payments, and the interest rate you will be paying.
• Simple Interest: The charges for your financing, this is a calculation including the unpaid principal of the loan, how many days there are between each payment, and your annual percentage rate.
• Stipulation: This is any extra documentation or any further actions which will be required in order to complete your loan transaction. A good example of this would be your paystubs or other proof of income.
• Term: This is the total number of months your loan is expected to run.
• Total of Payments: This is the sum total of all payments made once you have completed the terms of the loan.
• Total Sales Price: This is the full cost of your new vehicle, it includes the amount you financed, your down payment, and the finance charges.
• Gross Monthly Income: Also known as GMI or the total amount of money you receive each month before taxes, social security, FICA and contributions to retirement plans are deducted.

Payment Estimators: How much can I afford?

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Tips for Car Finance and Budgeting

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Regardless of how good your consumer credit score, purchasing an automobile is often a challenging task. And if you’re a first-time buyer, have a shorter credit profile, or simply have a few dings to your credit, it might be quite grueling. So we’ve accumulated several finance and borrowing suggestions to make your entire car-buying experience as effortless as can be.

Effective finance tips and hints:

• Choose a car at a price tag that will fit your finances. – The Sales professional will be of assistance in determining what price level of automobiles is appropriate for the payment you are considering. In addition there is a monthly payment calculator available for you to use conveniently online.
• Optimize an upfront payment. – Raising your initial payment reduces your entire monthly payment and will strengthen your offer and probability of acceptance.
• Ensure Accuracy. – Be sure to provide accurate and complete information on your credit application.
• Get an estimate on your trade-in vehicle. – You should have an idea how much value there is in your current vehicle, in the event you’re thinking of trading it in, and to also obtain an improved understanding of the total purchase. In case you aren’t certain, we can present you with a no-cost estimate of your current car, as well as make contact with your financing company to enable you to figure out your most accurate vehicle value.

Price range and budgeting pointers:

If perhaps you’re like the majority car consumers, you’ll utilize some type of automobile financing to carry out your car purchase. The following info may help you understand what car payments could suit your budget each month, as well as how to use that information to assist in your car selection.

Your monthly budget:

Many lenders suggest that you spend less than 15% of your gross monthly income (GMI) on your car payment monthly. Some examples include:

• $2000 GMI = $300 or less per month
• $4000 GMI = $600 or less per month

Monthly payments normally range from $20 – $25 per $1,000 financed.