How Does Financing a Car Work?

Finance Documents for Car 35071135

What does it mean to finance a car? If you’re a Mascoutah or Smithton driver, you surely have some questions about financing a car, and the Auffenberg Kia finance team is here to help!

Financing a car involves applying for a loan through a dealership, credit union, or bank and then deciding on which of the offers is best for your needs and budget. Here is a list of information lenders will consider for your interest rate and loan eligibility:

  • Loan Amount
  • Repayment Term
  • Loan Term
  • Age of Car
  • Credit Score
  • Debt-to-Income Ratio

If your credit score is lower, for whatever reasons, lenders will more than likely offer a higher interest rate loan. If you cannot improve your credit score, see if you can ask a friend or family member with good credit to cosign your loan!

Figure Out How Car Finance Works for You

Before applying for financing, calculate how much you can comfortably afford to pay. Below are a few important things to consider when finding a lender and plan that fits you:

  • With a poor credit score, Smithton drivers can make larger down payments to compensate for the impact of higher-interest rates. Find out a reasonable down payment amount, then value your trade with us to lower purchase costs.
  • When calculating, include insurance costs, gas costs, and maintenance work. If you can make significantly large payments, you could enjoy savings. However, if monthly payments are too expensive, an unforeseen cost could pose implications. Use our payment calculator to plan ahead.
  • Submit all applications within a two week time period to not negatively impact your credit score!

Completing the Auto Financing Process

Still wondering how car finance works? It all leads up to stopping in at your local dealership and finalizing the proper loan term. In many cases, you could possibly negotiate a better price depending on your budget.

As you finish the process, our finance center will guide you every step of the way with proper care and great advice due to our honesty policy in place.

Woman with New Car Key

Learn More About Auto Financing With Auffenberg Kia!

Now that you’ve answered, “How does financing work?” Visit us at Auffenberg Kia near Mascoutah to apply for your auto loan! Whether you choose a new or used vehicle, our finance center is here to get you behind the wheel of your next car! Contact us with any questions! Be sure to use our credit estimator and read our guide on what to bring when buying a car before stopping in!

 

More From Auffenberg Kia

  • What are the 2021 Kia K5 Colors?

    If you were a fan of the Kia Optima colors of the past, you’ll fall in love with the gorgeous Kia K5 colors for 2021. This modern sedan showcases its style with a collection of eight different paint colors and seven interior options – which means you can stand out from the crowd in Mascoutah….

  • What are the 2021 Kia Sorento Trim Levels?

    The Kia Sorento has long been a favorite of drivers from Mascoutah to Smithton, but what’s in store for the latest model year? There are five different Kia Sorento trim levels for 2021, each offering their own unique blend of features and technology. So whether you want an affordable SUV or a top-of-the-line luxury experience,…

  • 2021 Kia Seltos Interior & Dimensions

    Kia offers a range of exciting SUVs that can transport you and your family from O'Fallon to Mascoutah with comfort and convenience in mind. The newest addition to the Kia SUV lineup, the Kia Seltos, certainly has a lot of offer. The Kia Seltos interior is incredibly versatile and spacious, and includes plenty of exciting…

Saved Vehicles

SAVED VEHICLES

You don't have any saved vehicles!

Look for this link on your favorites:

Save

Once you've saved some vehicles, you can view them here at any time.

Contact Us

(618) 622-4522

Call Now

106 Auto Court • O'Fallon, IL 62269

Get Directions

Today's Hours:

Open Today! Sales: 9am-8pm

Open Today! Service: 7am-6pm

Open Today! Parts: 7am-6pm

Auffenberg Kia 38.5932803, -89.9583229.