How Does Car Financing Work?

If you’re wondering about the ins and outs of auto loan financing and car leasing, our financial experts at Withnell Hyundai are by your side to navigate the used car finance process. When it comes to purchasing a used vehicle to enhance your commutes and adventures around Portland and Mcminnville, you’ll want to know how car finance works before applying for car leasing and auto loan financing. Discover all the details in this handy Withnell Hyundai used car finance guide, then contact us for a test drive!

What is Car Leasing?

So what does car leasing mean? It’s not the same as either buying or renting. Car leasing means that you pay for a vehicle for a predetermined period of time called a lease term (usually between 36-39 months). The amount you pay monthly is determined by the difference between the new car price and the vehicle’s estimated value at the end of the lease term (including interest and additional fees and taxes) divided by the number of months within the lease term. If you’re thinking of leasing a car around Corvallis, this process will be distinct from the car-ownership journey undertaken with auto loan financing.

What is Auto Loan Financing?

How does auto loan financing work? Auto loan financing is a path to owning your next vehicle. You’ll first want to apply for a car loan either at a financial institution or Withnell Hyundai near Keizer. As you’re exploring your financing options, you have the choice of applying for financing online at home, or you can apply in-person. Factors lenders will consider are:

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

If you’ve monitored your credit score and credit history and they’re not the best, consider asking a family member or close friend to co-sign your auto loan. This can help boost your chances of getting auto loan financing.

Discover More About Auto Loan Financing

Now that we’ve covered the car leasing, auto loan financing, and used car finance process, it’s time to experience it yourself! Our finance team is here to guide you through the process at Withnell Hyundai near Albany. As you’re considering your financing options, you’ll also want to look at offers and incentives to ensure that you’re getting the best deal. Visit us today to discover more!

FAQ: Everything You Need to Know About Financing Your Next Vehicle


So you’ve finally made up your mind. You’ve decided to stop pushing that old sedan, truck, or SUV that’s already long past its lifespan and are making a much-needed upgrade. Great! Now it’s time to figure out the part of the car buying process that just about every Keizer, and Woodburn driver laments; paying for it.

While vehicles come with a high price tag, there are affordable ways to fit them into your budget, which is where financing comes in. If you’re thinking long-term ownership for your next vehicle, then you’ve come to the right place. Here’s everything you need to know about financing your next vehicle.

What is auto loan financing?

Let’s start with the most obvious question. Auto loan financing is the process at which you pay a monthly amount towards the total price (the MSRP) of a vehicle with the end goal being your complete ownership over the vehicle.

What options do I have when it comes to auto loan financing?

While you can borrow directly from a bank, Withnell Hyundai offers a range of financing options to our customers around McMinnville and Albany, OR thanks to our many connections with banks and lenders on both a regional and national level. We even have a first responder’s program, offering exclusive vehicle specials to those who serve our community.

What are the benefits of financing through Withnell Hyundai?

We take much of the paperwork and stress that comes with figuring out how to finance a vehicle and streamline it into one easy and convenient process. Our connections with banks and lenders give you a comprehensive look at all your options that you can’t get on your own. On top of that, we occasionally offer rate specials and manufacturer incentives by financing through us.

What is car leasing?

Car leasing is a smart option for Mcminnville drivers who want to try out the latest models without committing to a long-term auto loan financing plan. Leasing a car has lower interest rates and monthly payments than auto loan financing, and has an easier approval process for drivers with low credit scores. Explore our lease deals on the latest models at Withnell Hyundai in Salem.

What is APR?

APR stands for annual percentage rates, and in layman’s terms, it’s a percentage that represents how much it will cost you to take out a loan. It factors in the total interest you will pay throughout the loan, any fees for taking out the loan, and how long you have to pay it back.

Is it better to have short-term or long-term credit contracts?

The answer to this question depends on your situation, but how they work goes something like this:

Long-Term: Your monthly payments will be lower, but your interest rate will be higher. Since you’ll have monthly payments over a longer period, you will likely end up paying more than the car is worth due to depreciation.
Short-term: Your monthly payments will be higher, but you’ll have lower interest rates, and you’ll be able to pay off the car quicker than you would otherwise. Plus, the lower interest rate means you will pay less in the end.

Is it possible for me to get 0% APR?

Potentially; it depends on your credit history and current income. If you have a low credit score, chances are slim you will be approved for a loan with no interest. However, if you are qualified for one, it’s worth noting that these sorts of loans come with very short terms (generally 24-36 months). Hence, your monthly payment will be high, so it’s vital that you weigh the pros and cons before going in on 0% APR.

Can I get pre-approved for auto loan financing?

Yes, absolutely you can. If you’re unsure about your credit score, we encourage you to pre-qualify for financing before applying for credit. This will give you the clearest view of where you stand in terms of your credit.

What’s the difference between being pre-qualifying for auto loan financing and applying for credit?

Pre-qualifying for credit means that a lender has reviewed for qualifications and has found you to be a worthy candidate for a loan. Applying for credit is the process of actually trying to acquire the loan you are qualified for.

Withnell Hyundai is located at: 1996 Mission St Se • Salem, OR 97302
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1996 Mission St Se • Salem, OR 97302

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Withnell Hyundai 44.9260911, -123.0207286.