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Do you feel like you’re in the dark when it comes to car financing? You’re not alone—many drivers in Van Buren and Arcadia start with the basic question of, “How does car financing work?” when getting ready to buy a vehicle. Fortunately, Spitzer Buick GMC is here to clear things up! Read our guide below to learn more about how car finance works.
Before we dive into how car finance works, we should answer a preliminary question: What does it mean to finance a car? When you finance a car, you work with a lender, such as a bank or credit union, who loans you the money for the car. You are then responsible for paying that loan back to the lender in monthly payments, plus interest and any other fees, within a certain period, called the loan term. Once you’ve paid off the loan, you’re the sole owner of the vehicle!
Now that you know what it means to finance a car, it’s time to learn how the process works and how to get started. After you find a new or used vehicle you want to purchase, the next step is applying for a loan.
As we mentioned, you can go through a bank or credit union, but you can also work directly with a dealership like ours! If you wish to do so, you can apply for pre-approval online. Regardless of whether you get help from the dealership or apply on your own, lenders will look at the following factors:
If your credit score is low or your credit history is weak, you may need to get a cosigner for your loan. Typically, this would be someone close to you, like a family member or longtime friend.
You may receive offers from multiple lenders. And, if you have bad credit, you may consider in-house financing from dealerships that offer it. Take the time to compare all your options and choose the one that is right for you and your budget. Consider how much of a down payment you can afford, how much your monthly payments will be, and how much other expenses (insurance, registration, fuel, and maintenance) will cost to ensure you can afford the loan you choose.
At some dealerships, you might need to negotiate the price of your vehicle before signing off on the loan. But at Spitzer Buick GMC, the Panda Price eliminates the need to negotiate with our best offer up front! With the Panda Price, we take the stress out of getting the best price on a vehicle.
Once you’re satisfied with the price, it’s time to finalize your loan terms. There will be paperwork to sign, and then comes the fun part — taking delivery of your new ride and bringing it home to McComb!
Do you have some more specific questions about how car finance works? We’re here for you at every step of your journey! Contact us or visit our dealership in Findlay to get started. With our help, you’ll be driving home in a vehicle you love with a finance plan you feel good about!