How Does Car Financing Work?

Are you a Winnemucca driver ready to purchase your next new vehicle? If you’ve decided buying rather than leasing a new car is the way to go for your current budget, you may be wondering what your financing options are. In the following guide, our Rackley Chrysler Dodge Jeep Ram finance experts have outlined how car finance works so you can be more informed about your available routes. Contact us or stop into the dealership when you’re ready to learn more!

What is Financing a Car?

So, what does it even mean to finance a car? You may not have the outright total cash for a new car available right away, so you can choose to get a loan from a financial institution to support your car payments. After you make a down payment, which is recommended as at least 10% of the vehicle’s price, you’ll construct your monthly payment plan which factors in the interest to repay your chosen lender. The following elements will help a lender determine your interest rate:

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

Note that hopeful Battle Mountain car-buyers with poor or no credit will have a harder time securing a low interest rate. But, if you spend some time rebuilding your credit, a stronger score will help lower your interest rates.

Find the Financing Plan That’s Best for You

Before you shop around for interest rates from different lenders such as the dealership’s in-house finance team, a bank, credit union, or other financial institution, you’ll want to determine your monthly budget. Go through the car-buying process already knowing your budget so you can find an interest rate you know is manageable for you. The following pointers can also help ensure a stress-free process with a successful outcome:

  • Factor in other driving expenses like gas, insurance, routine maintenance, etc.
  • Remember that you can negotiate.
  • Shop around for different lenders within a tight time frame. Typically, between 14-30 days is a safe range for lenders to request a credit report. If you continue shopping around beyond that range, the late inquiries could hurt your credit.
  • Consider applying for financing online to get pre-approved. Pre-approval locks in your interest rate, since they can fluctuate until your quote becomes final.

Learn More About How Car Finance Works from Rackley Chrysler Dodge Jeep Ram

Buying a new vehicle like a RAM 1500 or stylish Jeep Wrangler to upgrade your daily commute throughout Elko and weekend adventures beyond Fernley can be an exciting, stress-free experience. If you adhere to the aforementioned advice, you’ll shop with confidence for a car loan with a manageable interest rate. If you have more questions for our Rackley Chrysler Dodge Jeep Ram finance team about buying a new car, don’t hesitate to contact us.

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5050 E Winnemucca Blvd • Winnemucca, NV 89445

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Rackley Chrysler Dodge Jeep Ram

5050 E Winnemucca Blvd Winnemucca, NV

Phone: 775-302-2714


Phone: 775-553-5826

5050 E Winnemucca Blvd Winnemucca, NV

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5050 E Winnemucca Blvd Winnemucca, NV


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5050 E Winnemucca Blvd Winnemucca, NV
40.976231 -117.71522
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Rackley Chrysler Dodge Jeep Ram
Rackley Chrysler Dodge Jeep Ram
5050 E Winnemucca Blvd
Winnemucca, NV, 89445 US
Rackley Chrysler Dodge Jeep Ram 40.976231, -117.71522.