Archive for the ‘Finance’ Category

Auto Finance 101: Which Down Payment is Right for You?

Monday, October 9th, 2017
down payment

You’ve chosen the perfect vehicle, and now all that’s standing in the way is the small matter of payment. If you’re financing a new or used vehicle, the issue of down payments will arise. But just like many aspects of selecting a vehicle, down payments can be complex! Is a down payment necessary? How much will it be? And how is this amount calculated? Here are a few things you should know about down payments before you drive off in your new or used car or truck.

While it was once true that the typical down payment for a new vehicle hovered somewhere around 20%, that is simply not the case now. Many factors will determine which is the right down payment for you and the vehicle you’ve got your eye on. These days, many drivers are putting forth no more than a 10% down payment to purchase their dream car, while others offer a down payment of somewhere in the middle. You’ll need to ask yourself several questions before finding the magic number.

What down payment can you afford?

A down payment of 20% may be impossible with your current income. That’s OK. Dealerships offer a wide range of finance options to make sure you don’t sign up for more than you can handle. Payne is one of them! Contact our finance department for more info.

Will you purchase GAP Insurance?

If you’ll be purchasing GAP insurance for your new vehicle, you can probably get away with a down payment of about 10%. This is because GAP insurance will cover the cost of your vehicle should it be totaled. Car insurance is a whole other ball game, so you’ll want to consult closely with your dealership’s finance department about this issue.

What is Zero Down?

Got good credit? You may be in for a pleasant surprise with zero down. This means that you’re not obligated to give a down payment. A couple of drawbacks to this include higher monthly payments and probably, higher finance charges. You won’t have to save up for months, though, meaning you’ll get your new car sooner than expected. If you do go down the Zero Down route, consider GAP insurance to cover the difference. This is a great option for first time buyers!


Ready to take a new vehicle for a spin? Visit your local Ed Payne auto dealership to view our wide selection of new and used models! Or if you need service on your current vehicle, call us to schedule an appointment!

Auto Finance 101: Do I Need a Co-Signer?

Thursday, September 21st, 2017
auto finance

The process of purchasing a vehicle can be complicated enough. From annual percentage rates, to GAP insurance and extended warranty, it seems the intricacies of auto finance are never-ending. Add terms like “co-signer” into the mix, and you’ve entered a whole other ball game!

If you’ve recently been shopping for cars, you may be wondering what a co-signer is, what it does, and whether or not you’ll need one to purchase the vehicle of your dreams. The answer isn’t black and white.

In fact, several factors can impact whether or not you need a co-signer. Here are a few ways to determine whether or not you’ll need a co-signer to purchase that new vehicle you’ve got your eye on.

Do I need a co-signer?

You might. You might not.

If you are seeking a hefty loan, but don’t have the good credit score to back it up, your lender may request that you acquire a co-signer. This person is usually a family member or friend with good credit, who promises to pay back the loan should you not be able to. It’s not a decision to be taken lightly, but if you have a good history of on-time payments, a co-signer is a great solution to help you get the car you truly want.

Some factors that may determine your need for a co-signer include your credit score and the amount of loan you’re seeking, among other things. If you need a new vehicle, but you’re certain your credit score is not great, you might want to already start considering a co-signer early on. Of course, this will make the process with the finance department run much more smoothly.

A co-signer is a benefit to both you and your lender. Ultimately not only does your lender gain peace of mind from knowing you will repay your loan, but you may also walk away with a better interest rate, given the good credit of your co-signer. Bringing on a co-signer during your car buying journey may be just the ticket to driving away in an awesome vehicle you can feel good about.

Need help with auto finance?

In the market for a new or used vehicle? Our Ed Payne auto finance department can help you quality for your dream ride. Visit us to view our latest in new and used from Ford, GMC, Chevy, Dodge and so much more!

Auto Financing 101: Learn About These Leasing Benefits

Wednesday, August 23rd, 2017
leasing benefits

Auto Financing 101: Learn About These Leasing Benefits 

A car purchase is one of the most important purchases you’ll ever make. It’s a decision not to be taken lightly! This decision is so important, in fact, that many people instead choose to lease a vehicle. A lower level of commitment proves beneficial to different people for different reasons, largely dependent on how much they earn and how often they drive, among other things. You may be wondering if leasing a vehicle is right for you. Here are a few leasing benefits a vehicle in lieu of purchasing one:

No Down Payment

While some promotional lease deals may require a down payment, for the most part, you can cruise by on a lease without one. Instead of a down payment and monthly payment thereafter, you’ll only need pay the first month’s payment and tag/registration fees. This is a major perk for drivers on a budget!

Lower Payments

You’ll almost certainly be facing lower payments than with buying. This is because a lease requires that you only make payments on the portion of the car that you use. This is one of several leasing benefits, and one that many people find to be the biggest reason for doing so.

Less Maintenance

Since you’ll be leasing your vehicle for a much shorter time period than when you buy one, you’ll ultimately be faced with less maintenance. Sounds good, doesn’t it?! Even so, many people lease their vehicle for the same amount of time as the manufacturer’s warranty. This ensures repairs are taken care of by the company, and not the leaser.


Interested in leasing a new vehicle? Ed Payne’s Brownsville, Weslaco, McAllen and Mission car dealerships have a wide variety of new and used vehicles to choose from. Speak to one of our sales representatives about the benefits of leasing or used vehicle from our Ford, Chevy, GMC or Dodge car lots today.

Negotiating Your Car Loan: How To Do It

Friday, August 4th, 2017
car loan

Negotiating Your Car Loan: How To Do It

Car loans are tricky business. Between interest rates and credit scores, it can be almost impossible to know if you’re getting a good deal. If you purchased a new or used vehicle in the past few years, and are unsatisfied about how much you are paying in interest, it may be time to renegotiate. Here are a few tips you can use for a good shot at a good interest rate.

Shop the loan separately from the car

You can start the loan application process before you even consider your vehicle. Consider credit unions, reliable online lenders, banks and your auto insurance company. Compare rates so you have a solid selling point once you hit the dealership.

Consolidate your applications

It’s common knowledge that your credit score takes a hit with each credit inquiry. But did you know that consolidating your applications can help? Submitting all of your car loan applications within a two-week period will ensure they count as just one inquiry. Keep this in mind while you shop around!

Read the fine print

You should always thoroughly read over any contract you’re signing, and this is especially true for car loans. Your lender is not obligated to give you the best interest rate you qualify for. Be sure you are dealing with one you can trust, and always ensure you understand the conditions before you enter a binding agreement.

Do your math

If your payments don’t add up to the interest rate you’ve negotiated, beware! You should always double-check the math on this type of deal, as mistakes can happen, and they can happen at your expense. Use an online auto calculator as a good start.
Ready to get that car loan? Our Payne Insurance Group may be able to help! Visit one of our Payne dealerships, located all throughout the RGV, to talk to a trained specialist about a car loan. 

Tax Breaks: Does Your New Electric Vehicle Qualify?

Sunday, July 16th, 2017
buying a new vehicle

Driving an electric or hybrid vehicle is a great first step toward going green. But did you know driving an electric car can also put money in your wallet? Unbeknownst to many, driving off the lot in an electric or hybrid vehicle can lead to big tax breaks. So what is this credit? And how do you get it?

Does Your Car Qualify?

It depends! The federal electric car tax credit only applies to certain electric and hybrid vehicles. The amount of the credit is based on the capacity of the vehicle’s battery pack. Although all battery-run electric cars are eligible for the full amount in tax credits, the same doesn’t apply for plug-in hybrids – which can present some confusion for buyers and owners. View the entire list of qualifying vehicles here. You’ll need to fill out the IRS Form 8936 when you file your taxes. Check with your tax professional should you have any questions about qualifying for a tax credit for your electric or hybrid vehicle.


Are you in the market for a new or used eco-friendly vehicle? Ed Payne’s got ’em, plus so much more! Visit one of our Valleywide dealerships to view our latest selection in new and used models from brands like Ford, Chevy, GMC, Mitsubishi and more!

What is GAP Insurance?

Wednesday, July 5th, 2017

You’ve just selected the car of your dreams – but now you need auto insurance. Shopping for car insurance is one of the least pleasant parts of acquiring a new vehicle. But it’s a necessary part, indeed. Adding to the issue is the fact that there are so many different coverage options, one of which is GAP coverage. GAP insurance is a term you might have heard before when shopping for a new vehicle. We’re here to break down what it is, and how it can help you and your vehicle when you’re suddenly caught in a bind.

So, what is it?

GAP insurance, also known as Guaranteed Auto Protection, is pitched to new and used car owners on the basis that cars depreciate immediately upon driving off the lot. Your shiny new vehicle is now a used automobile. Therefore, you could be in for a world of hurt to your wallet in the event of an unfortunate accident or theft.

What does it do?

GAP insurance is intended to cover the difference between your car’s depreciated value and the amount you owe on your auto loan if your car is stolen or totaled. This type of reassurance allows many drivers peace of mind.

Who needs it?

Not everyone needs GAP insurance. GAP coverage really only exists to protect drivers against the costs of a total loss. This only benefits drivers who are leasing or financing. Speak to our Ed Payne finance department if you’ve got questions about GAP insurance and if it’s right for you.


Are you looking for a new or used vehicle? Ed Payne’s GAP coverage is a great option for those looking for a little extra protection. Stop by one of our Rio Grande Valley dealerships to view our latest inventory! We have a wide selection of new and used cars and trucks from brands like Chevrolet, Ford, GMC, and Dodge. Here you’ll find just what you’re looking for, plus more!

Auto Financing 101: What is APR?

Tuesday, July 4th, 2017
auto financing

Financing a vehicle can be a confusing process, especially if you’re not quite sure what to expect. A sufficient knowledge of car and finance terms will help you out a great deal when you’re shopping for a new vehicle. You may have heard the term “APR” when negotiating a deal on a new or used car or truck.

Short for Annual Percentage Rate, something like APR can easily stand in the way between you and acquiring your dream car. The term stands for the amount of interest on your loan that you will pay annually, which can vary greatly, depending on factors like your credit score. Agree to a too-high amount, and you won’t be able to make your payments. Worse than not qualifying for a car loan, is having your car repossessed after a missed payment. Don’t fall into the trap!

Fixed vs. Variable

Typically, you’ll encounter two types of APR when auto financing. Fixed rate financing, for instance, means that your interest rate will remain the same for the entirety of your loan. With this, you’ll be able to determine your monthly payments, as well as how much you’ll pay in interest over the life of your loan. With variable rate financing, your interest rate may change over time. This will be based on the prime rate, or the “index”. It may go up or down over time, which will alter the amount of your monthly payments. Pay close attention to what type of interest rate you are agreeing to. This will ensure no surprises once that first vehicle payment becomes due.


Hoping to finance a new or used vehicle? Our Ed Payne auto financing department can help! Visit us at one of our valleywide dealerships for more information about how you can lease or purchase one of our stunning new Chevy, Ford, GMC, Dodge or Mitsubishi models.

Auto Financing 101: What is Good Credit?

Monday, July 3rd, 2017
good credit

Credit – it’s a necessary part of adulthood. You’ll hear chatter about your credit score all throughout your adult life. The sooner you realize its importance, the better! Whether you’re purchasing a home, signing up for a new credit card, or leasing a new vehicle, your credit plays a large role in how much of a loan you quality for. It can also indicate how high or low your payments will be.

Good credit demonstrates that you’re capable of borrowing money and paying it back in a timely manner. This financial reputation will carry on with you through the years, so it really is best to monitor it frequently. You’ll also need to clear up any inaccuracies you may see upon viewing your  credit report.Everyone strives for good credit, but what exactly is good credit? And if there is a magic number – what is it?

What is good credit?

Before you can gauge what constitutes a good credit score, you first need to know how it’s measured. Things like credit borrowed, on-time payments, and the amount of credit inquiries you have can all impact your credit. On a scale from 300-850, any credit score about 700 is generally considered good, with anything above 800 considered excellent. But don’t worry – an excellent score can take years to acquire. Unfortunately, a good credit score can easily be tarnished with just a few unwise credit movies. This is all important, since a great credit score will not only allow you more opportunities for financing. It will also help you negotiate lower payments with lenders.


Are you in the market for a new or used vehicle? Our Ed Payne financing department can help determine which car or truck you can best afford, and help you drive away with it today. Stop by one of our valleywide dealerships, or check out our current inventory of new and used cars and trucks on our website.