If you’re ready to buy a new or pre-owned car, you have three main options: leasing, buying outright with cash, or financing. How does financing a car work? What does it mean to finance a car? These are questions our finance team at Auffenberg Kia gets asked frequently. We’re here to help guide you through the process. Below, you can learn more about car financing and what it entails.
To get the financing process rolling, you’ll want to start by applying for financing. You can apply through a bank, a credit union, or a dealership like Auffenberg Kia. We offer a handy, secure application that you can complete online to apply for a loan at our Shiloh dealership. Regardless of the lender you choose, they’ll look at the following factors to determine how much you qualify for:
If you have a low credit score, you might be feeling apprehensive about your chances of getting approved. However, it’s not uncommon for people to finance cars with a low credit score or no credit. Consider asking a family member or very close friend if they would be willing to consign on your loan. If they have a good credit score and steady income, their signature can greatly improve your standing as an applicant.
When you’re applying for a car loan, you don’t have to settle on the first offer you receive. You might have a few different offers on the table. For example, you can compare a dealership’s in-house financing offer with an offer you received from a bank or credit union. Then, you can make a decision about which one makes the most sense for your lifestyle and budget. Determine how much money you can comfortably afford to put down on the loan. Also, figure out how much your monthly payments will be, so you’ll know for certain that you’ll be able to repay the loan.
Before you finalize the auto loan and purchase the car, you may feel the need to negotiate the price with a salesperson. You don’t have to do this if you don’t want to, but if you’ve done research on market values for a specific used model, for example, you may have some bargaining power. Once a price has been agreed upon, you can settle on a loan with rates and terms that work for you. Finally, close the deal by signing all of the required documents, then drive home in your newly financed car.
If you want to know more about how car financing works, the finance team at Auffenberg Kia is happy to answer your questions. Contact us online or call us at 618-624-2277 to speak with one of our friendly, knowledgeable staff members. In the meantime, be sure to check out our car buying tips to learn more about topics like what to bring when buying a car, the meaning of “certified pre-owned,” and more.
We know you’re seeing more and more electric vehicles—EVs—on the streets around Mascoutah and Smithton. Many of them are from luxury brands, so you might be thinking that an electric SUV is out of reach. Think again! The 2024 Kia EV9 is set to arrive at Auffenberg Kia to level the EV playing field with…
Gas prices probably aren’t going down any time soon, which is why a lot of car shoppers in Smithton want powerful, modern engines that also get great gas mileage. Fuel efficiency is what leads many people to the 2023 Kia Sportage mpg and its appeal. How good is the 2023 Kia Sportage’s gas mileage?…
The 2023 Kia Forte is a premium sedan that offers incredible performance and best-in-class features at a budget-friendly price. With a wide range of options—from the chic black Kia Forte to a classic white Kia Forte—there’s an option here for every type of driver. Stop by our Shiloh Kia dealer, and one of our friendly…
You don't have any saved vehicles!
Look for this link on your favorites:
Once you've saved some vehicles, you can view them here at any time.
618-624-2277
Call Now1155 Berg Blvd • Shiloh, IL 62269
Get DirectionsOpen Today! Sales: 8:30am-6pm
Service: Closed
Parts: Closed