Financing 101 at Shawnee Mission Ford

When it comes to buying a car, the financial side of things can feel a bit overwhelming. At Shawnee Mission Ford in Shawnee, KS, we want to make the car-buying process as easy and straightforward as possible. Whether you're buying a new Ford or a certified pre-owned vehicle, understanding how financing works is key to making an informed decision. Our goal is to guide you through every step of the financing process, so you can drive off our lot with the confidence that you're making the best financial choice.

Understanding Auto Financing

Auto financing is the process of borrowing money to pay for a vehicle, which is then paid off over time with interest. When you finance a vehicle, you essentially take out a loan, and in return, the lender allows you to make monthly payments until the loan is paid off. This allows you to spread out the cost of the car over a period of time, making it more affordable than paying in full upfront.

Financing is a great option if you don’t want to spend all of your savings on a car or if you need a vehicle now and prefer to make payments instead of paying in full.

Key Financing Terms You Should Know

Before jumping into the financing process, it's helpful to understand some basic terms:

• Loan Term: This refers to the length of time you have to repay the loan. Loan terms for car purchases usually range from 36 to 72 months, but this can vary depending on the lender and the specifics of your loan.
• APR (Annual Percentage Rate): This is the interest rate charged on your loan. It’s important to shop around for the best APR, as it affects how much you will pay overall. Your credit score, the length of the loan, and the car you’re buying all play a role in determining your APR.
• Down Payment: A down payment is the initial amount you pay upfront toward the cost of the car. The larger your down payment, the less you’ll have to finance, which can lower your monthly payments and reduce the overall interest you pay.
• Monthly Payments: Your monthly payments are what you’ll pay each month until the loan is paid off. The amount depends on your loan term, APR, and down payment. It's important to choose a payment plan that fits comfortably within your budget. Use our online payment calculator tool to get a glimpse into your options.
• Trade-In:If you currently own a car, you may be able to trade it in as part of your down payment. The trade-in value is applied to the cost of the car you're purchasing, which can reduce the loan amount.

Steps to Financing Your Vehicle

1. Check Your Credit Score

Your credit score is one of the most important factors in determining your loan’s interest rate and approval. Lenders typically offer better rates to those with higher credit scores. At Shawnee Mission Ford, we encourage customers to check their credit before applying for financing. If your score isn’t perfect, don't worry – we work with many lenders and can help you find a solution that fits your financial situation.

2. Set Your Budget

Before you start shopping for a car, it’s a good idea to set a budget. Take a look at your monthly income and expenses to figure out how much you can comfortably afford for a car payment. Keep in mind that, in addition to the loan payment, you’ll also need to budget for insurance, taxes, maintenance, and fuel.

3. Get Pre-Approved

One of the best ways to start your car-buying journey is by getting pre-approved for financing. A pre-approval gives you a clearer idea of how much you can borrow and what interest rate you may qualify for. Plus, it shows dealerships that you're a serious buyer, making the entire process smoother.

4. Choose Your Vehicle

Once you know your budget and financing options, it’s time to find the right vehicle. Whether you're interested in a new Ford model or a certified pre-owned Ford, Shawnee Mission Ford has a wide variety of cars, trucks, and SUVs to suit every need.

5. Finalize the Financing

Once you've selected your vehicle, it’s time to work with our financing team to finalize your loan. We’ll walk you through the available options, including loan term, APR, and down payment, ensuring that you get the best possible deal for your budget.

Why Choose Shawnee Mission Ford for Financing?

At Shawnee Mission Ford, we believe that financing should be easy and transparent. Our team is dedicated to helping you understand every step of the financing process, making sure you get the best loan terms and rates. We work with a wide range of financial institutions and offer various financing options to fit your needs.

Additionally, our online tools, such as the payment calculator and credit application, make it easy for you to get started before even stepping into the dealership. Whether you’re buying a new car or a certified pre-owned vehicle, we’re here to help you secure the financing you need at Shawnee Mission Ford.

Get Started Today

Are you ready to find your next Ford and secure financing that works for you? Visit Shawnee Mission Ford in Shawnee, KS, and our team will help guide you through the financing process. With our support, you can feel confident in your financial decision and drive away in a car that fits both your needs and your budget.