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How Does Financing a Car Work?

Finance Paperwork with Glasses

 

Shopping for a new Ford car, truck, or SUV in the Winnipeg area? If so, you are most likely planning on financing your purchase. So, how does financing a car work, and what does it mean to finance a car? The experts in the Capital Ford Winnipeg Finance Centre are here to guide you through the car financing process so you can get the best deal possible.

What Does it Mean to Finance a Car?

Financing a car means that you are borrowing money to put towards the purchase or lease of a vehicle. You can secure a car loan through a local Selkirk-area bank or credit union, or through a dealership like Capital Ford Winnipeg. Either way, you will be required to pay the loan off in monthly installments.

How Does Car Financing Work?

Once you’ve done your research and have identified the vehicle you wish to purchase or lease, you can apply for financing with the dealership, a bank, or a credit union of your choice. For your convenience, you can use the Capital Ford Winnipeg finance application available online and get pre-approved from the comfort of your home or office. Some of the factors that your lender will take into consideration before approving your loan include:

  • Credit Score
  • Loan Amount
  • Length of Loan
  • Debt-to-Income Ratio
  • Age of the Vehicle (if you are purchasing a pre-owned vehicle)

The interest rate you receive will be primarily determined by your credit score. If you have a low credit rating, you may want to consider asking a family member or close friend to cosign your loan. This can help you to secure a more favorable interest rate.

Choose Your Lender

Compare the offers you have received from various lenders to see which is the best match with your financial situation. Make sure to consider how much of a down payment you can make and whether the monthly payments fit your budget. Feel free to use the Capital Ford Winnipeg payment calculator to find out what your monthly payments will be. Planning on trading in your current vehicle to help cover your down payment? Use our Instant Trade-In Appraisal tool to get a quick estimate on the fair market trade-in value of your vehicle.

Finalize the Loan Terms

Once you have chosen the loan offer that works best for your budget, you’ll have the option to negotiate on the price. The negotiation process is a way for you and the salesperson to settle on a loan amount and interest rate that you can both agree upon. Once this has been worked out, you can finalize the loan terms, decide whether to take on extended warranty coverage, sign all the necessary paperwork, and drive home in your new vehicle!

Explore Your Auto Financing Options Today at Capital Ford Winnipeg!

Our finance team is standing by to ensure that you secure a budget-friendly deal on an exciting new Ford that can take your Steinbach commute to the next level. Check out our First-Time Buyer Program and make sure to take a look at our current new vehicle specials. If you have any questions or would like more information, please don’t hesitate to contact us.

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