Clement Pre-Owned

Financing a used car

Financing a used car

Financing a used car in Clement Pre-Owned dealership, MO

Financing a used car is a convenient way to purchase your dream vehicle in Missouri in the shortest terms. At Clement Pre-Owned, we offer a seamless auto financing experience through transparent procedures and an easy-to-use online pre-approval system. 

Get pre-approved

If you have any doubts about a low score or need to discuss specific terms, contact our financial department for a free consultation. 

Who can use car financing?

Car financing is an advantageous choice for those looking to purchase a used car, but don't have the ability to pay the entire cost at once. You can borrow money not only from a bank, but from many other financial institutions. Check the terms in several organizations to compare the offers and do the best bargain. 

What types of car financing exist?

There are two primary types of auto financing – leases and loans. If you want to buy a car, opt for loans. If you're looking for a car rental, choose leases. In both cases, you make monthly payments to cover the cost of having the vehicle, whether it's for owning or renting.

Leasing or buying: what to consider?

Leasing a car is usually cheaper than buying it. But if you want to keep the car for a long time, you must finish paying off the lease before selling it. 

Buying is typically a better choice because of lower expenses in the long run. It is also a good idea if you want a reliable car without spending much money.

What determines the interest rate and total loan amount?

The interest rate depends on the vehicle price and the buyer's credit history, including income and expenses.

The loan amount is the difference between the car’s price and initial payment, plus all the interest payments to the bank.

Free car loan calculator 

What are the pros and cons of used car financing?


  • Getting car fast. Financing can promptly provide you with the opportunity to buy an auto if you're in a hurry to get a car and don't want to wait years to save up. You can apply for a loan at a local dealership and drive away in a new vehicle on the same day.
  • Benefit from complete ownership. When you finance a used car, you'll own it completely when the credit is paid off. You can pay in small pieces, which is not heavily pressured by your family budget.
  • Improving your credit. Paying your monthly bills on time tells credit agencies that you're dependable. By improving your credit score, you may qualify for better loan terms for future purchases.


  • Higher costs. Regardless of the interest rate you receive, the total amount you pay for the car over the loan period will typically exceed its initial price. But you even can gain some advantage of a fixed price, as the increase in the market cost for your vehicle can be higher than the interest to be paid.
  • Limited choices. If you want a specific type of car, financing might not work for you. Some banks and lenders offer loans for only certain types of purchases. For example, they might not lend you money to buy a more than ten-year-old car. 

Clement Pre-Owned Dealership put in a dedicated effort to discover the most favorable loan terms, and our team is committed to ensuring you're well-informed every step of the way. Through collaboration with numerous lending institutions, we can offer access to remarkably attractive rates. This allows you to drive your dream car while still maintaining a healthy bank account. Read a detailed explanation about financing autos in our dealership here

How do lenders decide how much they can offer?

Lenders check your credit history, affecting your car loan's interest rate. They use this to determine the loan amount and review your credit report to see your financial past. After looking at what lenders offer, the finance manager calculates the loan terms, such as how long it'll be, the interest rate, and if you need to provide collateral. If we agree on the terms and conditions, you sign a contract with the bank and drive home behind the wheel of your new car.

Get your free credit score range

What comes next when you finish paying a car loan?

Once your car loan is fully paid, you become the sole and full owner of the car. 

Can I own a vehicle if I lease it?

If you decide to lease a car, you pay to borrow it. The monthly payment will be based on the car's depreciation plus interest and fees. After signing an agreement, you become a lessee of the company that owns the vehicle and keeps the title. Ownership may only pass to you when the lease contract ends. At that point, you have the option of returning the car to the dealer or purchasing it in a buyout.

Can I trade-in a financed car?

Yes, it's possible, even if you haven't finished paying for it. However, there are a few important factors to think about, like the current value of your car versus the amount you still owe on it, and how much you can afford to spend on a new one.

Read more about selling a financed car