Laughing woman in drivers seat holding car keys

How Does Car Financing Work?

If you’re asking yourself, “What does it mean to finance a car?” and “How does financing a car work?”, we at Olathe Dodge Chrysler Jeep Ram are here to help. Once you’re ready to get behind the wheel of a new or used vehicle, you have a few options. You can outright purchase the vehicle, lease it, or apply for financing. Learn more about each to see which option is best for you and your financial situation. Have any questions? Contact our finance department today!

How Does Financing a Car Work?

The first step to learning how car financing works is to know what you’ll need when applying for a new or used car loan through the dealership, a bank, or even a credit union. Most applications can be started online, or you can apply at the dealership in person. Factors that the lender will look at include:

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

If you have a low score or bad credit, a car loan might still be an option at the dealership. Consider asking a close friend or family member to cosign your loan. Another option is leasing. You’re more likely to get approved for a lease with bad credit, although the payments will be higher than if you had good credit history.

Choose Your Lender

If approved for a loan, there may be a few options for you to choose from when it comes to lenders. Some dealerships offer in-house financing. And if you have bad credit, this may seem like your only option; however, you can also compare this offer to that from a bank or credit union to see which makes the most sense for your needs and budget. Before this, you’ll want to keep in mind how much money you can put down as well as how much you can afford in terms of monthly payments. You can even use our online payment calculator to estimate these payments.

Finalize the Loan Terms

Before finalizing your loan and buying a car, you may need to negotiate on price. If this is the case, you and the salesperson can go back and forth until you settle on a loan with an interest rate that works for you. Once you settle on a price, be sure to look over additional loan agreements, and then you can finalize the loan terms and close the deal. After the paperwork is signed, you can drive off in your next RAM or Jeep vehicle.

Happy couple in dealership holding keys to new car with smiling salesperson in background

Learn More About Car Financing in Olathe

Get the automotive finance process started today by applying online! If you’re still in the research phase, feel free to browse our new vehicle specials and contact Olathe Dodge Chrysler Jeep Ram to talk with someone from our finance department with any questions concerning your financing needs.

Recent News from Olathe Dodge Chrysler Jeep Ram

  • How to Check the Oil in Your Car

    Engine oil is one of the most important substances in your vehicle – it protects your engine from dirt and debris, lubricates moving parts, and helps to draw heat away from the engine to reduce wear and tear. To make sure your engine oil is doing its job and to ensure you won’t need an…

  • RAM 1500 Specials Editions

    The new RAM 1500 provides Overland Park-area drivers with many configurations to suit their driving demands, whether fuel economy or a truck that outperforms the competition is the priority. Want to take things to the next level on the Gardner streets? Consider the RAM 1500 Special Editions. Not only do these packages enhance your truck’s appearance,…

  • 2020 Dodge Charger Trim Levels

    Having trouble deciding which of the 2020 Dodge Charger trim levels to buy or lease? The new Dodge Charger comes in five distinct configurations, with two versions of the Dodge Charger RT Scat Pack for six total options. Review the Dodge Charger trims with the team at Olathe Dodge Chrysler Jeep Ram to make the best choice for your…

LET'S MAKE THIS EASY. YOU DRIVE.

GET STARTED
Garage

Open Your Garage

Save & Compare Multiple Vehicles

Customize

Customize Payments

Create your own monthly payment plan

Checkout

Check-out Online

Finalize and schedule pick-up in 3 steps

Saved Vehicles

SAVED VEHICLES

You don't have any saved vehicles!

Look for this link on your favorites:

Save

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

Contact Us

913-815-8482

Call Now

15500 W 117th Street • Olathe, KS 66062

Get Directions

Today's Hours:

Open Today! Sales: 8:30am-7pm

Open Today! Service: 7am-6pm

Olathe Dodge Chrysler Jeep Ram 38.9159007, -94.7645272.