How Does Car Financing Work?

couple closing deal at dealership

If you are in the market for a new or used car, you have a few options when it comes to paying for the vehicle you select. You have the option to purchase it outright, lease it, or apply for financing. What is financing a car and what does it mean for your budget? If you have been researching the question, “What does it mean to finance a car?” and “How does financing a car work?”, we would be glad to answer those questions for you.

How Does Financing a Car Work?

If you want to learn how car finance works, your first step is applying for the loan through the dealership, a bank, or a credit union. You can visit the dealership to start the application process or you can expedite the process by getting pre-approved online. Our application is safe, secure, and easy to complete. Here is some of the information you will need to include:

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

If your credit score is less than ideal or you have yet to establish credit, you do still have options. If possible, you could have a family member or close friend co-sign for you.

Select a Lender

Once the approval process is complete, it is likely that you will have a couple of different options available to you. If the dealership offers in-house financing, you can compare their offer to a bank or credit union offer to see which makes the most sense for your needs and budget. Carefully consider your down payment as well as how much you can afford each month before accepting an offer.

Seal the Deal

In most cases, you have the ability to negotiate the terms of your loan before making a final decision. After the negotiation process is complete, you are almost ready to drive home in the vehicle of your dreams. After you sign the paperwork, you are free to drive home!. For more information like used-car financing and other car-buying tips, visit Suntrup Automotive Group.

Suntrup Automotive Group Makes Car Shopping Hassle-Free

If you still have additional questions about car financing, including used car financing, do not hesitate to reach out to the team at Suntrup Automotive Group. Our experts would be happy to walk you through the process.

More from Suntrup Automotive Group

  • 2019 Fall Festivals in St. Louis

    St. Louis is a great place to live at any time of year, but there’s no way to deny that fall is one of the most seasons for folks who live nearby. In truth, there are so many exciting fall events around St. Louis, that it can be hard to choose just one or pick…

  • Summer Events in St. Louis: Your 2019 Guide

    Have you been looking for the best summer events in St. Louis? You don’t have to play a guessing game in order to plan your next vacation or day out. Locals and visitors alike have trusted Suntrup Automotive Group to show them to the best local restaurants and springtime attractions, and now, we’re bringing you the best…

  • Vehicle Service Centers Near St. Louis

    Once you buy a vehicle, you have to start taking care of it. This includes staying on top of basic vehicle maintenance and having your new or used car serviced when necessary. The Suntrup Automotive Group has several service centers in the greater St. Louis area. Offering detailed service on several makes and models, you’ll…

Saved Vehicles


You don't have any saved vehicles!

Look for this link on your favorites:


Once you've saved some vehicles, you can view them here at any time.

Contact Us

5926 S. Lindbergh Blvd • St. Louis, MO 63123

Get Directions
Suntrup Automotive Group 38.5214964, -90.3451239.