How Does Financing a Car Work?

couple meeting with car salesman

If you’re shopping for a new car in Kearney you know that the car buying process can be lengthy and stressful. At Midway Chrysler Dodge Jeep Ram, we aim to make it as easy as possible by preparing you with all the information you need before you go into the dealership. Don’t worry if you’re asking yourself “What is car financing a car?” or “What does it mean to finance a car?” We’ve detailed everything in our guide below. Read on to learn more about how car finance works, then contact us when you’re ready to begin the car buying process. 

How Car Finance Works

After you’ve selected which vehicle you want to drive around Grand Island, the first step to taking it home is to apply for a loan through your Hastings dealership, a bank, or a credit union. You can begin your application online at Midway Chrysler Dodge Jeep Ram, or you can apply for a loan in person at any of these lenders. When apply for a loan, this is what lenders will be looking at:

  • Your credit score
  • The loan amount
  • The length of the loan
  • Your debt-to-income ratio
  • The age of the vehicle

If you’re unsure if financing a car is the best option for you, compare buying vs. leasing to see which option is best for you and your budget. 

Pick Your Lender

When you apply for a loan, you have your choice on where you want to go. As we mentioned above, you can go to the dealership, the bank, or a credit union to get a loan, but it’s also smart to shop at multiple Lexington lenders to see who will offer you the best price. When you receive your offers, calculate how much money you can use for the down payment and how much your monthly payments will be. Make sure to also have additional funds for regular car maintenance and emergency repairs. Once you have decided on which lender to go with, close out your other applications to ensure there isn’t a negative impact on your credit score and move on to the next step. 

Finalize the Loan Terms

Before you finalize your loan with your lender, you may need to negotiate the price. When you pick your vehicle, do your research and find out how much the car is going for at other dealerships, and on the general market with sites like, Kelley Blue Book, or Once you know more about how much the car is worth, take this information to the salesperson. Negotiate a price with them and be sure to read the entire loan contract before you sign. Once you do, take possession of your new car and drive home to show off to your friends and family. 

Finance Your New Car With Midway Chrysler Dodge Jeep Ram!

Now that you know the answer to “How does financing a car work?”, visit us at Midway Chrysler Dodge Jeep Ram and talk to our finance experts about how you can finance a car with Midway Chrysler Dodge Jeep Ram. When you finance with a dealership, you can take advantage of extra incentives like our new and used vehicle specials, as well as use our payment calculator to see how much you’ll be paying each month for your new car. When you’re ready, stop in our Kearney showroom to explore our inventory and begin the car buying process!

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219 2nd Ave E • Kearney, NE 68847

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Midway Chrysler Dodge Jeep Ram 40.6749668, -99.0838379.