Steps to Financing Your First Car

Step 1: Determine Your Budget

Begin by assessing your financial situation. Calculate your monthly income and expenses to determine how much you can comfortably afford for car payments. Remember that it is best to have saved up enough to make a down payment that covers around 20 percent of the car’s value.

Be sure to also consider additional costs, like insurance, maintenance, and fuel. Establishing a realistic budget will guide your car search so you can find the right model and trim level that fits your personal needs.

Step 2: Check Your Credit Score

A good credit score improves your chances of obtaining favorable financing terms. Request a copy of your credit report from major credit bureaus and review it for any errors.

Pay bills on time, reduce outstanding debts, and maintain a low credit utilization ratio to boost your credit score. With a higher credit score, you’ll have even more flexibility in your loan options and enjoy the monthly payments you want to have for your new ride!

Step 3: Shop for the Right Car

With your budget in mind, it's time to start searching for the right car. Consider your needs, preferences, and lifestyle when shopping. That way, you can pick out the model you want as well as the trim level that comes with the features you need too. Research your different options and test drive any models you are interested in possibly buying.  

Step 4: Get Pre-Approved

You can also take care of one other step before visiting the dealership. With our online application, you can start to work on securing your car loan through the pre-approval process. Pre-approval provides a clear understanding of your borrowing capacity and allows our finance center to get started on weighing your options by working with lenders to get you approved for a loan.

Step 5: Determine Your Financing Terms

At this point, you are ready to head to the dealership and work out the terms of your plan. You’ll want to decide the exact down payment you want to make, what financing terms you want to have, and if you would like to add a trade-in to your plan. Luckily, you’ll be able to work one on one with a member of our finance team to figure out all the specifics of your plan. They can also help to see if any incentives are available to you so you can earn even more towards your new car.

Step 6: Finalize the Financing

Once you've agreed on the terms of your plan, it's time to finalize the financing. You’ll need to make sure for this part of the process that you have the necessary documentation to complete your purchase. That includes bringing your driver’s license, proof of insurance, and the title of your car if you are trading it in. 

Review the loan agreement carefully, ensuring you understand the terms, interest rate, monthly payments, and any associated fees before signing the paperwork and heading out in your new ride.