How Does Car Financing Work?

Hands Doing Calculations with Calculator

If you are in the market for a new car in the Manchester area, you have the option of purchasing it outright, leasing it, or applying for financing. What is financing a car, and what does it mean to finance a car? A common question we hear at the dealership is, “How does financing a car work?” Our finance experts would be more than happy to explain the process so you can decide if this is the right method for your driving needs and budget.

How Car Finance Works

If you are wondering how car finance works with a new or used vehicle, the first step in the process is to apply for the loan through the dealership, a bank, or a credit union. At Tulley BMW of Nashua, you can apply online from the comfort of your home, or you can complete your application at the dealership. Factors that the lender will look at 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, consider asking a family member or close friend to cosign your loan.

Choose Your Lender

If your application has been approved, it is possible that you will have a few different lenders to choose from. If the dealership offers in-house financing, you can compare their offer to a bank or credit union to see which is a better value for you. After receiving your offer, consider a down payment amount and calculate your monthly payments to make sure that you are capable of making your loan payments.

Finalize the Terms of the Loan 

If you decide to negotiate on price and come to an agreement on a loan with an interest rate that works for you, it’s time to finalize the terms of the loan. To do so, sign all the necessary paperwork, take delivery of the vehicle, and you are good to go! You can now hit the Lowell, MA roads in the vehicle of your dreams. 

Tulley BMW of Nashua Makes Car Shopping Hassle-Free

If you have additional questions about automotive financing, or if you are wondering whether leasing or financing is right for you, do not hesitate to contact the team at Tulley BMW of Nashua.

More from Tulley BMW of Nashua

  • 2022 BMW 3 Series Price List

    The BMW 3 Series is a popular pick with Manchester drivers, and it’s not hard to see why. Not only is the 3 Series packed to the brim with sophisticated amenities, but it is also priced competitively in the segment. The 2022 BMW 3 Series price starts at $41,450 MSRP for the base model BMW…

  • 2022 BMW X7 Price & Configurations

    The 2022 BMW X7 configurations include core, M, and ALPINA models, each bringing its own unique flair to the X7 lineup. Learn more about these BMW X7 configurations, and their corresponding prices, below with Tulley BMW of Nashua. Then experience the new 2022 BMW X7 by making your way to our showroom in Nashua.  X7 InventoryContact Us What…

  • What’s in the 2022 BMW X5 Interior?

      From the available Harman Kardon® Surround Sound Audio System to the large panoramic moonroof, the 2022 BMW X5 interior raises the bar for Manchester drivers. Long known for its luxury and style, the X5 Sports Activity Vehicle is packed with premium features and technology to elevate your daily drives to soaring new heights. Explore…

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

(603) 888-5050

Call Now

147 Daniel Webster Hwy • Nashua, NH 03060

Get Directions

Today's Hours:

Open Today! Sales: 8am-6pm

Open Today! Service: 7:30am-5pm

Open Today! Parts: 7:30am-5pm

Tulley BMW of Nashua 42.729283, -71.447886.