" "
" "

Gerald Kia of Naperville

How Does Financing a Car Work?

Saleswoman with car and clipboard

If you’re looking for a new vehicle, then you’re likely wondering, “how does financing a car work?” When you finance a car, you take out a loan for your car and then pay it off in affordable monthly installments. Auto loan terms for both new and used cars average about 72 months. Because every car buyer’s lifestyle and financial situation is unique, there are many ways to customize your financing plan. For example, bad credit financing is available for many Oswego drivers who choose to finance directly with a dealership. 

Read on for our car-buying tips about how car finance works in different situations so you can prepare for your car buying experience.

What Does it Mean to Finance a Car?

What is financing a car going to entail, and what can you expect from the process? Your loan eligibility hinges on several factors. Lenders will determine whether or not to offer you a loan by looking at factors like:

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

Finding a Financing Plan that Works for Your Budget

What is financing a car when compared with leasing? Financing payments are typically higher than lease payments and result in ownership at the end of the loan term. Lease payments are lower, and you’ll return the vehicle to the dealership at the end of the loan term.

Before you apply for financing and search for a lender, be sure to calculate your budget and monthly payments. A few more points to keep in mind include:

  • Bad-credit financing. If you have low or bad credit, a large down payment can help convince lenders to offer you a lower interest rate.
  • Trade-in value. You can apply the value of your current vehicle towards your next Kia model. Value your trade-in at our finance center today!
  • Make a budget. Include fuel, insurance, and maintenance costs, and determine your highest reasonable monthly payment — that’s because late payments can damage your credit.
  • Submit financing applications. To prevent damage to your credit score, submit all applications within two weeks if you apply for financing with multiple lenders.

Explore Your Auto Financing Options in Naperville

Ready to take the next step toward a new Kia Soul or Sportage, but you’re still left wondering, “how does financing a car work?” At Gerald Kia of Naperville, our goal is to find you Kia financing or auto loan financing that works with your budget. If concerns about your credit score or monthly payments are holding you back, contact our finance center to speak with an expert about flexible auto loan financing options and new vehicle specials for Oswego and Plainfield drivers!

More from Gerald Kia of Naperville

  • How Much Does the Kia Seltos Cost?

    There are a lot of reasons to be excited about the all-new Kia Seltos: interior features, capability, and technology — all at the affordable Kia Seltos price Aurora car-buyers are looking for! No matter which trim you choose, the Kia Seltos price represents an incredible value for families in Oswego. Read our guide below to…

  • 2020 Kia Soul Interior Features

    While you already know that the 2020 Kia Soul offers unmistakable styling, it’s the Kia Soul interior that you’re sure to fall in love with. Kia Soul interior dimensions provide plenty of space for you and your passengers, and the famous Kia Soul cargo space still gives you a ton of room to help with…

  • 2020 Kia Sorento Interior Features

    If you’re looking for 3-row seating and lots of amenities in your next family vehicle, the 2020 Kia Sorento is well worth your consideration. Advanced interior features and spacious seating will keep the whole family relaxed and engaged on your drives around Naperville and Aurora. Read on for more on what you’ll find inside the…

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


Call Now

1661 Aurora Ave • Naperville, IL 60540

Get Directions

Today's Hours:

Open Today! Sales: 9am-9pm

Open Today! Service: 7am-6pm

Open Today! Parts: 7am-6pm

Gerald Kia of Naperville 41.7652472, -88.1900288.