How Does Financing a Car Work?

luxury car salesman giving new car key

Drivers in Oakhurst looking to buy a new car may be considering financing, but how does financing a car work? If you’re looking to answer this question and others like: “What is financing a car?” and “What does it mean to finance a car?” Ray Catena Lexus of Monmouth is here to help! Read our guide to learn how car finance works, then see our Lexus finance services to see how we can help you! As a Lexus dealer near NJ, we have the expertise and the inventory to get you the Lexus of your dreams near Long Branch.

What is Financing a Car?

When drivers in Colts Neck want to apply to finance a car, they may be asking themselves “What is financing a car?” or “What does it mean to finance a car?” In essence, when you finance a car you’re applying for a loan through the dealership, the bank, or a lender, and you pay back the loan with monthly payments. You begin the process by applying for financing online, then these factors will determine your monthly payment and interest rate:

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

If you have a bad credit score or no credit, your interest rate or monthly payment will be higher. You can have a family member or friend to co-sign the loan so you can lower your rates. After applying for Lexus financial services, the next step is to find a financial dealer.

Finding a Lender

When searching for a financial dealer near Long Branch and Holmdel, you can choose to go through the dealership, a bank, or a lender like a credit union. Many dealerships offer financing with additional benefits like GAP insurance for drivers. While applying at a dealership comes with additional benefits, you can compare your offer to others and choose the best one for you and your budget. When considering your budget, however, calculate how much you can afford to use as the down payment and how much you can afford to pay each month. It’s also important to set aside money for unexpected maintenance. Whichever financial dealer you apply with, make sure to finish your applications within 14 days so you don’t impact your credit score.

Finalizing the Loan

When you decide which financial dealer to sign with in Toms River or Long branch, it’s time to finalize the process with a signature. Before you do, make sure you have your budget planned to accommodate your monthly payments and any unexpected repairs. Once you’re satisfied, you can sign the paperwork and take ownership of the vehicle.

Get Car Financing with Ray Catena Lexus of Monmouth

Now that you have the answers to questions like: “How does financing a car work?”, “What is financing a car?”, and “What does it mean to finance a car?”, you know how car financing works! Whether you choose a new Lexus or an L/Certified Pre-Owned Lexus, Ray Catena Lexus of Monmouth is here to help you find a Lexus personalized for you! Contact us when you’re ready to take a test drive.

Calculate Your Future Car Payment

Enter basic information to figure out the estimated auto loan rate or monthly payment amount for a new Lexus. Contact us with any questions you may have.


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Price(s) include(s) all costs to be paid by a consumer, except licensing costs, registration fees, and taxes.
Prices do not include $599 dealer doc fee.
MSRP contains base MSRP, any factory installed options, and delivery, processing and handling charges. Delivery, processing and handling fee is based on the value of the processing, handling and delivery services Lexus provides, as well as Lexus overall pricing structure. Lexus may make a profit on the delivery, processing and handling fee.

While great effort is made to ensure the accuracy of the information on this site, errors do occur so please verify information with a customer service rep. This is easily done by calling us at (732) 493-5000 or by visiting us at the dealership.

MPG Disclaimer
Preliminary mileage estimates determined by Lexus. EPA mileage estimates not available at time of publishing. Actual mileage will vary.

**Sticker reflects features and subscriptions available at time of original vehicle purchase. See your Lexus dealer for updated information.

Contact Us

Ray Catena Lexus of Monmouth 40.27322, -74.04233.