Have you been dreaming about getting behind the wheel of a shiny new cherry-red sports car? The good news is, with the right financing deal, that dream ride can become a reality. You just have to know how to work the system to your advantage. When it comes to getting approved for an auto loan these days, especially if you have less than perfect credit, you need to go in armed with knowledge and a game plan. Don't just walk into a dealership without doing your research first. Dealers make money on the interest rates they charge you, so they're not necessarily going to offer you their best deal right off the bat. But by educating yourself on your options and taking a few smart steps, you can drive off the lot with an affordable payment plan and that cherry-sweet new ride. Here are a few tips to help you get the best cherry financing deal.
What Is Cherry Financing?
Cherry financing refers to special financing deals offered by manufacturers and dealerships to sell current model year vehicles that still remain on the lot. The name comes from the phrase “cherry pick” which means to select the best or most desirable options.
Why Do Dealers Offer Cherry Financing?
Dealers want to move remaining inventory to make room for new models, even if it means lowering their profit margins. They may offer incentives like 0% APR financing, cash back, or special rebates. Some perks are available to all customers, while others target buyers with top tier credit scores.
The deals allow dealers to sell vehicles quickly while still turning a decent profit. For buyers with good credit, it’s a chance to save thousands on a new vehicle. Just make sure any short-term incentive doesn’t come with a higher interest rate over the life of the loan.
How Can You Get the Best Cherry Financing Deal?
Do your research to find current offers and your credit score. Check sites like Autotrader, Kelley Blue Book, and the dealer’s website for the latest deals. See if you prequalify for top tier offers.
Visit the dealer at the end of the month or quarter when they're most motivated to move inventory. Don’t feel pressured, be willing to walk away. Negotiate the best overall price, not just the lowest payment.
Consider a shorter loan term, like 3 years instead of 6. You’ll pay less interest and own the vehicle sooner. Put down a larger down payment or trade-in to lower your principal amount financed.
Ask if the rate is fixed or variable. Get preapproved for an auto loan from your bank or credit union to compare rates. Make the dealer beat it! With some savvy moves, you can drive off the lot with a cherry deal on a new set of wheels.
Benefits of Cherry Financing
Financing a new cherry vehicle has some sweet benefits.
Lower Interest Rates
Cherry frequently runs special financing deals with lower interest rates than typical auto loans. We’re talking 0% APR for up to 60 months. That means no interest charges for the life of the loan if you pay on time. Even if you don’t qualify for 0%, Cherry’s rates are usually at least 1-2% lower than other lenders.
More Flexible Terms
Cherry wants to get you into a new ride, so they’re willing to be flexible on the loan terms. You can often get 72 or even 84 month financing through Cherry to lower your payments. They also typically don’t have prepayment penalties if you want to pay it off early.
Valuable Incentives
In addition to great rates, Cherry frequently offers cash back, rebates, or bonus incentives when you finance through them. We’ve seen offers of $500, $1000, even up to $5000 cash back for financing a new Cherry. They really want your business!
A Helpful Process
Cherry makes the whole financing process simple and straightforward. You can apply on their website or at the dealership, get approved quickly, and drive off with your new vehicle - all in the same day. Cherry’s finance reps will walk you through all the details and ensure you understand the terms of your loan before you sign.
Financing with Cherry is the cherry on top of a great vehicle deal. With competitive rates, flexible terms, valuable incentives and an easy process, why wouldn’t you want to finance your new set of wheels with them? A sweet ride and a sweet deal - what could be better?
Types of Assets You Can Finance With Cherry
.webp)
When financing a vehicle, you have a few options for the types of assets you can use as collateral. The most common types of collateral for cherry financing are:
Cash or Liquid Assets
Do you have cash in the bank or other liquid assets like stocks, bonds or mutual funds? Using these as collateral means you don’t have to put up your vehicle as security for the loan. The lender will place a lien on your liquid assets, but you get to keep driving your vehicle. If you default on the loan, the lender can seize your cash or sell your liquid assets to recover their loss.
Vehicle as Collateral
The most popular option is using your vehicle as collateral for the loan. This means the lender maintains a lien on your vehicle title. If you fail to repay the loan, the lender can repossess and sell your vehicle to settle the debt. Vehicle collateral typically allows you to get approved for a larger loan amount since the asset securing the debt, the vehicle, retains its value well.
Other Valuable Property
Do you own a home, recreational vehicle, aircraft or other valuable property? Some lenders may accept other high-value items as collateral for a cherry financing loan. They will place a lien on the property’s title to secure the debt. Defaulting on the loan could result in the lender seizing and selling the property. Using other property as collateral typically allows you to access larger loan amounts compared to unsecured options.
The specific terms and conditions will vary between different lenders and loan programs. Shop around at different banks, credit unions, and online lenders to compare interest rates and find the offer that best suits your needs. Putting up strong collateral, especially if it’s your vehicle or home, can help you negotiate a lower interest rate and more favorable repayment terms.
Tips for Getting the Best Cherry Financing Rates
Getting the best deal on a cherry financing loan takes some work, but the savings can be well worth it. Here are some tips to help you get the lowest interest rates possible:
Check your credit score
Your credit score plays a big role in the interest rates you’ll be offered. Check your credit reports and scores and dispute any errors. Pay down balances on credit cards and other revolving credit to improve your score. The higher your score, the lower your rates.
Compare offers from different lenders
Don’t just go with the first offer you get. Apply to a few different lenders, whether banks, credit unions, or online lenders. Compare the APRs and loan terms they offer. Even small differences can save you money over the life of the loan.
Ask about discounts
Many lenders offer discounts and lower rates for things like setting up automatic payments, having a relationship with the lender (like a checking account), or completing a financing course. Don’t be afraid to ask if they offer any discounts or promotions that could lower your rate.
Negotiate the best deal
Once you’ve compared offers and explored discounts, go back to the lender with the best overall offer and negotiate to lower the rate even more. Explain that you’ve received more competitive offers from other lenders. They may be willing to match or beat those other offers to win your business. Every little bit helps!
Following these tips will put you in the best position to qualify for the lowest interest rates on your cherry financing loan. Shop around, improve your credit, ask for discounts, and negotiate firmly but politely. With some effort, you can find financing that fits your budget and allows you to buy that cherry of your dreams!
Applying for Cherry Financing: Step-by-Step Guide
Once you've decided that cherry financing is the right choice for your new vehicle purchase, it's time to start the application process. Follow these steps to get started:
Check Your Credit Score
Your credit score will determine your eligibility and interest rate for a cherry financing loan. Check your current score and look for any errors. Dispute them if needed to get an accurate score. Scores of 650 and above will typically get approved, while 700 and above will qualify you for the best rates.
Calculate Your Budget
Know how much you can afford for a down payment and monthly payment before you start applying. A good rule of thumb is your monthly payment should be no more than 15% of your take-home pay. The more you can put down upfront, the better.
Gather the Necessary Documentation
You'll need documents to verify your income and employment. This includes things like pay stubs, tax returns, bank statements, and a photo ID. Some lenders may require additional info like utility bills. Have everything ready before starting an application.
Compare Lenders and Apply
Research different lenders like banks, credit unions, and online lenders to compare interest rates and loan terms. Once you find some good options, start the application process either online, over the phone, or in person. Be prepared to provide the documentation you gathered.
Negotiate the Best Deal
Don't just accept the first offer. Discuss the rates and terms with your lender to get the lowest rate possible. Explain your budget, down payment amount, and credit score to see if they can do any better. They may be able to lower the rate by as much as 1-2% which could save you thousands.
Sign the Final Paperwork
Once approved, you'll review and sign the final loan documents including the promissory note, Truth in Lending statement, and in some cases, additional disclosures. Make sure everything looks correct before you sign. Once complete, you're ready to head to the dealership and drive your new vehicle home!
Conclusion
So there you have it, the inside scoop on how to score the best cherry financing deal. Remember, do your homework and check your credit score and report so you know where you stand. Then, shop around at different banks and credit unions to compare rates and terms. Be prepared to negotiate to get the offer that works best for your needs and budget. Once you have an offer you're satisfied with, make sure to carefully review all the details before you sign on the dotted line. If you follow these tips, you'll be well on your way to driving off the lot in your new set of wheels with payments you can comfortably afford. The only thing left to decide is whether you want to go with the cherry red convertible or the candy apple sedan! The choice is yours.
0 Comments