How Does Car Financing Work?

couple at dealership

When you’re ready to purchase a used or new car to upgrade your ride on Jackson area roads, you can purchase it outright, lease it, or apply for financing. If you’re wondering “What does it mean to finance a car?” or “How does financing work?”, the finance specialists at Wilson KIA are here to help you understand the process.

How Does Financing a Car Work?

The first step in financing a new or used vehicle is to apply for a loan through a bank, credit union or, the dealership itself. Some key factors that the lender will want to look at include:

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

If you have a less than stellar credit history and a low credit rating, you might want to consider asking a family member or close friend to cosign your loan.

Choose Your Lender

Once you are approved for a loan at the dealership, you may want to compare their offer to what a bank or credit union offers, just to make sure that you’re getting a deal that best suits your needs and budget. Take a look at how much you can afford for a down payment, and calculate your monthly payments to ensure you are able to pay back the loan.

Finalize the Loan Terms

Before you finalize your loan, you may want to negotiate on the price. Our sales and finance team will work with you to make sure that you get a loan and interest rate that is right for your budget. Once you have negotiated a satisfactory deal, you’ll finalize the loan terms, sign all the required paperwork, and drive home in your new vehicle.

Find Stress-Free Car Financing in Brandon

At Wilson KIA we make it easy for you to get the best possible terms and rates on a car loan. Our network of local and national lenders allows us to provide the flexible financing that Ridgeland area drivers are looking for. Whether you are looking to buy or to lease, you can use our convenient online tools to estimate the trade-in value of your current vehicle, and get pre-approved for a low-interest loan, all from the comfort of your home or office.

If you have any questions or would like more information, please don’t hesitate to contact us, learn about auto liability insurance, how to get a lower interest rate on a car loan, or find out how you can finance a car with no credit today! Or, if you’d like to trade in your vehicle for a new one to finance, learn how to trade in your car to get the best offer or how to know if you should pay off your car early.

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