How Does Financing a Car Work?

 
Sabina drivers have many options when it comes to financing their used or new car purchases. You can apply for financing, lease the vehicle, or just purchase the car directly. Newer drivers might find themselves asking, “What does it mean to finance a car?” Well, you’re in luck – we at Bush Auto Place are here to help you better comprehend the process so you can make the most of a hassle-free, transparent purchasing process.

How Car Finance Works: Applying for Loans

First things first, the most critical aspect to learn about how car finance works with a new, used, or priced under 10k vehicle is to apply for the loan. Loan applications can be done through a credit union, a bank, or even here at Bush Auto Place. The application can also be started online from the comfort of your home. However, options to apply for a loan in person at the dealership are also available. Common factors that lenders evaluate include:

• Vehicle Age
• Debt-to-Income Ratio
• Length of Loan
• Loan Amount
• Current Credit Score

How Car Finance Works: Choosing a Lender

Have a low credit score or a weak credit history? Consider asking a trusted friend or family member to cosign your loan instead.  Once factors have been taken into account and signatures have taken place, you are eligible for loan approval. If you’ve been approved, you now have several courses of action. Depending on if the dealership offers in-house financing, you can begin comparing their offers to a similar credit union or bank offers to see which one makes the most sense for your financial situation.  Remain aware of how much your monthly payments are to ensure you’ll be able to pay back the loan on time, and check to see how much money you can put down upfront.

How Car Finance Works: Finalizing Loan Terms

Negotiating on a fair price is essential before finalizing your loan and purchasing your new vehicle. Feel free to take as much time as you need with your Bush Auto Place salesperson going back and forth until you settle on your ideal loan and interest rate. Then, finalize the loan terms and complete the deal. Signatures on all relevant paperwork pertaining to the vehicle purchase will take place, you’ll have your new vehicle delivered, and finally, you can cruise down the streets of Washington Court House in your new ride.

Explore How Car Finance Works Further at Bush Auto Place Today!

To explore more options relating to the automotive financing process, contact us or swing by our Wilmington dealership to consult a member of our knowledgeable Finance Center today!