How Does Car Financing Work?

If you’re excited about bringing a new Mazda home to your Albuquerque driveway, you may be curious about the various purchase options. Asking yourself “how does financing a car work,” or “what is financing a car,” is the right place to start. While your options certainly include buying outright or leasing a new Mazda from University Mazda, you can also get an auto loan. Learn more about how car finance works below.

What Does it Mean to Finance a Car?

First and foremost, what does it mean to finance a car? Securing an auto loan from our University Mazda dealership or a Rio Rancho area bank or credit union to help you make the monthly payments on your vehicle is how car finance works. To put it simply— you’ll be borrowing money from a lender to pay for your vehicle. Typically, when people “buy” a car, they aren’t doing so in cash. They are most likely financing!

How Does Financing a Car Work?

As mentioned, you’ll work with our finance team or your bank/credit union lender to determine the terms of your personal auto loan. The following factors are some of the elements considered when drafting the auto loan policy that is best for your current Santa Fe lifestyle:

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

More About How Car Finance Works

Our University Mazda finance team has a wealth of knowledge to help you throughout the financing process so buying a new car can be exciting and stress-free. Here are some other helpful tips regarding what does it mean to finance a car:

• A healthy credit score will secure you a better interest rate
• Always shop around to make sure your getting competitive rates
• Consider adding a cosigner to boost your credit score
• Remember that refinancing or trading in your financed car may be an option down the road

Rely on University Mazda For Any Financing Advice

If you still have questions regarding how does financing a car work or what is financing a car going to look like for you, contact us today. We are here to help! For Farmington drivers who are excited to get the process started, feel free to apply for financing online today and see what you may qualify for or if you get pre-approved!