How Does Car Financing Work?

Purchasing a used or new car for commuting between Hermitage and Nashville means purchasing outright, leasing, or applying for financing. But what is financing a car anyway? If you’re asking yourself, “What does it mean to finance a car?” and “How does financing a car work?” our experts are here to teach you. Read this handy guide below for a less-stressful and more well-informed buying experience.

How Does Financing a Car Work?

The easiest way to learn how car finance works is to apply for a loan. Once you’ve selected a new or used vehicle, start your finance application online, or go straight to the dealership. Factors that your lender will look at include:

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

Low credit score? No strong credit history? Ask a family member or close friend to cosign.

Choose Your Lender

You will likely have a few different loan options to decide between if you’re approved. With in-house financing, for example, you can compare a dealer’s offer to a bank or credit union’s to see which works best for your budget. Decide how much money you can put down, and how much your monthly payments will be so you can be sure you’ll be able to meet the terms of your agreement.

Finalize the Loan Terms

You may need to negotiate the price of your car purchase before finalizing your loan. If that’s the case, you and the salesperson will go back and forth until settling on an interest rate that makes sense. When you get to that point, the loan terms will be finalized, and the deal will close. Then you’ll sign all the necessary paperwork, take delivery of the vehicle, and park it in your driveway or garage!

Want to Know More About Car Financing in Madison?

To learn more about the automotive finance process, contact us or just visit our dealership to speak to a member of our finance department in Madison. 

More from Bob Frensley Chrysler Jeep Dodge Ram FIAT

  • How Much Can a RAM 1500 Tow?

    With the right equipment, the RAM 1500 can tow a maximum of 12,750 pounds, earning the light-duty pickup a Best-in-Class V8 Engine Towing* capacity. With greater capability than the 2018 RAM 1500, while delivering better fuel efficiency, the all-new 2019 RAM 1500 has the power and performance you need for Hermitage job sites in addition…

  • Best Restaurants in Madison, TN

    Contact Us For the best restaurants in Madison, TN, many diners will want to make the short drive to the neighboring Nashville area for anything from global fine dining to classic southern cooking, with just a few of our favorite places, including: Prince’s Hot Chicken The Catbird Seat Loveless Cafe Robert’s Western World Pancake Pantry…

  • Tax Returns: Your Key To The Car, Truck or SUV You’ve Always Wanted

    Tax season is upon us – however, following the strenuous process of doing your taxes, there comes a light at the end of the tunnel: a refund (…hopefully)! While it may be difficult at first to determine where your refund is best spent after a celebratory dinner at one of the best restaurants near Madison,…

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

2210 Gallatin Pike N. • Madison, TN 37115

Get Directions

Today's Hours:

Open Today! Sales: 8:30am-8pm

Open Today! Service: 7am-6pm

Bob Frensley Chrysler Jeep Dodge Ram FIAT

2210 Gallatin Pike N. Madison, TN

Phone: 615-528-5104


Phone: 615-528-5104

2210 Gallatin Pike N. Madison, TN

Mobile Sales

Phone: 615-606-3215

2210 Gallatin Pike N. Madison, TN


Phone: 615-528-5155

2210 Gallatin Pike N. Madison, TN

Mobile Service

Phone: 615-543-5837

2210 Gallatin Pike N. Madison, TN
36.30741 -86.6838
[schema type="organization" orgtype="LocalBusiness" url="" name="Bob Frensley Chrysler Jeep Dodge Ram FIAT" description="" street="2210 Gallatin Pike N." city="Madison" state="TN" postalcode="37115" country="US" email="" phone="615-528-5104" logo=""]
Bob Frensley Chrysler Jeep Dodge Ram FIAT
Bob Frensley Chrysler Jeep Dodge Ram FIAT
2210 Gallatin Pike N.
Madison, TN, 37115 US
Bob Frensley Chrysler Jeep Dodge Ram FIAT 36.30741, -86.6838.