How Does Car Financing Work?
HOW DOES CAR FINANCING WORK?
When it’s time to purchase your next used or new INFINITI vehicle, you have a few options: purchase it outright, lease it, or apply for financing with INFINITI of Northern Kentucky. You are probably wondering what is financing a car? If you’re asking yourself, “What does it mean to finance a car,” and “How does financing a car work,” the financial experts at the INFINITI of Northern Kentucky finance department are here to help you understand so you can have a well-informed and stress-free car-buying experience.
HOW DOES FINANCING A CAR WORK?
The first step to learning how car finance works and that’s knowing what is financing a car. When you buy a car — new or used — you would get an auto loan through INFINITI of Northern Kentucky, a bank, or a credit union, and make a monthly payment until it’s paid off. The application can be started online right at home or you can apply at the dealership while you’re browsing our inventory.
There are multiple factors lenders look at, which include:
- Credit Score
- Loan Amount
- Length of Loan
- Debt-to-Income Ratio
- Age of the Vehicle
If you know that your credit score is poor or you don’t have a solid credit report, you may want to ask a family member or close friend to cosign your car loan.
PICK THE RIGHT LENDER
Once you are approved for an auto loan, you may have a few financing options to choose from. If the dealership offers in-house financing, compare their financing deal with another financial institution or credit union to see which loan offer works best for your budget.
Consider how much you can put down and how much you can afford in monthly car payments to ensure you can pay back the loan.
COMPLETING THE LOAN TERMS
Before finalizing your auto loan, you may have to negotiate on the price. While INFINITI of Northern Kentucky is proud to offer competitive INFINITI deals, you and the salesperson will go back and forth until you settle on the loan terms, with an interest rate that also works best for you.
Finalize the loan terms and close the deal! You will then sign all of the paperwork, get the keys to your new luxury vehicle, and drive home knowing you got the best possible deal on your dream car.
LEARN MORE ABOUT HOW CAR FINANCING WORKS IN FORT WRIGHT?
Now that you know the answer to, “How does financing a car work,” and “What does it mean to finance a car,” the team at INFINITI of Northern Kentucky is here to answer any questions you may have.
Give us a call for details about our INFINITI deals, our INFINITI financial services address, for tips on whether you should get a lease vs. buying, or to schedule an appointment to get the car-buying process started.