What Does It Mean To Finance a Car?

Whether you’re looking to buy a new Nissan or a pre-owned Nissan for your Palmetto Bay commute, you have the option to either finance or lease your vehicle. If you’re a first-time car shopper or you haven’t purchased a car from a dealership in a while, you may be wondering how does financing a car work? or, what is financing a car? To help you understand your options and explain how car finance works, the HGreg Nissan Kendall finance team has made this comprehensive guide. Learn about car financing by reading below, then read about how to pay off a car loan early!

How Does Financing a Car Work?

After you’ve found the vehicle you want to purchase from HGreg Nissan Kendall and you’ve decided that you want to finance it, the first step is to apply for a loan through your local South Miami dealership. You can easily apply for financing online, or you can apply at the dealership. When you submit your application, it will be sent to multiple lenders who will look at these criteria:

• Credit Score
• Loan Amount
• Length of Loan
• Debt-to-Income Ratio
• Age of the Vehicle

If you’re concerned about a low credit score or if you don’t have a credit score, you can ask a friend or a family member to co-sign for you. 

Picking The Plan That’s Right For You

Car finance works best when you have multiple offers from different lenders. If you’re approved for a loan, it’s important that you compare each offer you receive and find other options through third-party lenders and credit unions. This ensures that you’re getting the best deal possible for your budget. After you’ve reviewed each of your options, you can choose the one that works best for you 

Finalize The Loan

Before you finalize your loan, you may want to negotiate on the price of your vehicle. You can use resources like Cars.com, Kelley Blue Book, or Edmunds.com to compare prices on vehicles and use this information to negotiate with the salesperson. Once you settle on a price, make sure to read all the information in your loan terms. You don’t want to accidentally pay for something you don’t need! Afterward you’ll sign all the necessary documents and take delivery of the vehicle to your Homestead home! 

Learn How Car Finance Works and More at HGreg Nissan Kendall

Now that you know the answer to “How does financing a car work?” Visit us at HGreg Nissan Kendall to browse our inventory and find the financing plan that’s best for you! Our friendly and knowledgeable finance team will help you apply for financing and find the value of your trade-in vehicle. We look forward to meeting you!