How Does Financing a Car Work?

Car key & credit card on a signed contract

 

If you’re a first-time car-buyer in Mobile, AL, you’re probably feeling unsure about where to begin. So, how does financing a car work? Learn all about financing a car from the auto finance team at Allen Turner Hyundai in this helpful guide, and then enjoy a stress-free and well-informed car-buying experience. We’re here to help you with everything from selling your old vehicle to a dealership to securing a loan for a new model

How to Finance a Car

It’s fairly easy for anyone in the Ft Walton area to finance a car. Once you decide on the new or used vehicle that’s right for your needs and budget, the first step is to apply for a loan — either through a financial institution like a bank or credit union, or directly with your dealership. You can apply online, or come to our dealership in Pensacola to apply in person. When deciding on a contract, your lender will consider the following factors:

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

Having a family member or close friend co-sign your loan can help if you have a low credit score or poor credit history.

Find a Lender

Once you’re approved for a loan, you may have different options to choose from. Compare offers from your dealership, bank, and/or credit union and select the one that best fits your financial situation. You may find that different offers have different benefits; for instance, one may give you smaller monthly payments, while another provides a better interest rate. 

Finalize Your Loan Terms

Once you have selected a loan offer, you may be able to negotiate for better terms. You can use other offers as leverage, but ultimately you and the lender will go back and forth until you settle on an interest rate that works for both of you. Once you settle, you can finalize the terms of the loan and close the deal. 

All that’s left is to sign the necessary paperwork, get behind the wheel, and drive home to Gulf Breeze!

If you have further questions about how car financing works or financing a car with no credit, contact us online with your questions or stop by Allen Turner Hyundai to chat with a member of our finance department. We’ll be happy to assist with all of your car-buying questions.

More from Allen Turner Hyundai

  • Explore the Towing Capabilities of the Hyundai Palisade

    The Hyundai Palisade has only been on the market since 2018, but it has already managed to make its mark on the auto industry. Car and Driver recently added the 2024 Hyundai Palisade to its 2024 Editors’ Choice list while referring to it as a “near-perfect blend of utility, value, and luxury.” It comes with…

  • Bookmark This Hyundai Venue Maintenance Guide

    The Hyundai Venue is a great choice if you’re looking for a small SUV that provides an impressive amount of cabin space while being compact enough for busy city roads as ones in Pensacola or Mobile. The Venue also has an affordable price tag compared to many other crossovers. You can get the best value…

  • What is the TPMS in My Hyundai and How Does it Work?

    Hyundai has a longstanding commitment to quality, safety, and innovation. These elements are all exemplified in the TPMS system that comes standard on Hyundai vehicles. In keeping with Hyundai’s unfailingly high standards and forward-thinking philosophy, the latest Hyundai models even pair their TPMS with other informative features that will help drivers optimize efficiency and stay…

Allen Turner Hyundai 30.4841431, -87.258355.