How Does Car Financing Work?

How Does Car Financing Work?

Financing a car can be a stressful process in Mesa, but with Rocky’s Auto Credit it doesn’t have to be! If you’ve already decided to purchase a used car instead of leasing it, you’re probably asking yourself: “What does it mean to finance a car?” Read our guide to learn all the steps of how car finance works so you’re prepared when you visit the dealership.

How to Finance a Car

Many drivers in Phoenix have asked themselves at one point: “How do I finance a car?” You may have already figured out that part of financing a car means taking out a loan. Most drivers take out an in-house car loan from the dealership vs. at a bank, since it offers more benefits and flexibility than taking it from a bank or a credit union. When you apply for a loan, certain factors determine if you’ll get the loan, how much you’ll pay each month, and what your interest rate will be:

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

If you were turned down for a car loan, there may be reasons like having poor credit or no credit. There are ways you can improve your credit score before purchasing a car, or you can apply for a no credit car loan.

Finding a Plan That’s Right for You

It’s important for drivers in Glendale to sit down and figure out how much they can afford for a car payment each month before going to the dealership. Here are some things to consider while making your budget:

  • If you have poor credit, making a bigger down payment can mitigate a high interest rate.
  • Include the cost of gas, liability insurance, and maintenance for your new vehicle when you’re making your budget. Drivers who make large monthly payments can enjoy significant savings and pay off their loan early, but if your monthly payment is too high, an unexpected cost can result in a major setback.
  • If you decide to apply for financing at multiple locations in Tempe, make sure to submit all of your applications within 14 days. Waiting too long can negatively impact your credit report.

The Final Steps

Shop around for your car loan to make sure you’re getting the best deal for your budget. Once you’ve selected a lender and the vehicle you want, you can add additional packages and add-ons, including protections like GAP insurance, to your purchase. Later on, you may be able to explore the option of refinancing your loan to seek a better interest rate.

Finance Your Car at Rocky’s Auto Credit!

Now that you’ve learned more about what is financing a car, contact us to meet our friendly staff and apply for financing with Rocky’s Auto Credit! While you’re here, read our car buying tips so you have all the information you need to buy a car before you head to the dealership! We have helpful guides covering good mileage for a used car, how No Credit/Bad Credit Financing works, and much more.


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No Credit / Bad Credit Financing

Credit challenged? Past bankruptcy? Foreclosure? No problem! With as little as $500* down payment and low monthly or semi-monthly payments, we can get anyone approved!

Contact Us

We offer used cars for sale to people that are credit impaired, have low income, or no credit at all. Our loan application process is quick, free, and completely secure with no obligation!


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