You’ve found the perfect car for you but now you need a way to pay for it. If you don’t have the cash on hand, financing is your best, and sometimes only, option. Taking out a car loan is a pretty simple process and it only gets simpler if the dealership has a finance department that will contact lenders for you. Still, it’s always nice to know exactly what happens when you finance a car.
When you finance a car, the lender is actually buying the car and letting you use it while you make payments. Once you pay off the loan, the car is yours. If you fail to make payments, the lender can repossess the car.
Before applying for a car loan, it’s generally wise to know your credit score. A higher credit score means a lower interest rate. That means you’ll pay less over the duration of the loan.
When you actually fill out the form to apply for the loan, you’ll need to know your income, expenses, mortgage, rent, how much debt you have, and your social security number. Lenders will verify all the information you provide so it’s best to be honest.
After that, it’s up to you to examine the loans offered by lenders. Keep in mind interest and loan length are important factors to consider before accepting!
We here at Packey Webb Ford will be happy to help you finance your new car!