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!


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(618) 622-4522

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106 Auto Court • O'Fallon, IL 62269

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Auffenberg Kia 38.5932803, -89.9583229.