How to Finance a New Car in 2026: Your Complete Guide

Far too often, customers assume that because their credit is less than ideal, they'll either never qualify for financing or they'll be rejected immediately. For others, it's a question of having great credit but being uncertain about which route to take. Should you lease with a buyback or finance as a purchase? Do you go through a bank, or can GM Financial help? For those with less-than-stellar credit ratings, there is no reason to think you can't qualify and drive away in the Buick Envision or GMC truck of your dreams. There is nothing to be ashamed of—there are always options, and our team is here to guide you.

With GM Financial, you'll apply for credit directly at our dealership. This is often the best and most streamlined solution for customers with good to excellent credit ratings. The process is integrated with our inventory, allowing for special incentives and promotions.

How It Works & Benefits: You'll complete a credit application, which our dedicated credit team reviews in partnership with GM Financial. Depending on your credit profile, you could receive a response the same day. Once approved, you'll sign a payment installment contract to schedule your monthly payments. The major advantages here are access to competitive manufacturer-sponsored Annual Percentage Rates (APR), potentially better payment terms, and faster, centralized approvals. It's a one-stop-shop that simplifies the entire process.

Another excellent option for those with good to excellent credit is securing financing through a bank or credit union. This route is ideal for the do-it-yourself (DIY) borrower who prefers to comparison shop for interest rates and terms independently.

How It Works & Benefits: You approach your bank or credit union (like OnPoint Community Credit Union or Bank of the Cascades, popular in Central Oregon) and fill out their credit application. Approval times vary but are typically within a business day. The key benefit is walking into Chevrolet GMC of Madras with a pre-approval check or letter, giving you clear negotiating power on the price of the vehicle itself. You handle the financing legwork, and we handle the rest of the sale and paperwork seamlessly.

Life happens, and credit can be impacted. For customers with bad or severely damaged credit, second-chance or third-chance auto financing provides a vital path to vehicle ownership. These solutions are designed for those who may not qualify for standard credit channels.

What to Know: These programs involve a network of specialized lenders who understand non-prime borrowers. Interest rates will be higher than prime loans, reflecting the increased lender risk, and borrowing terms might have specific conditions. You may need to provide proof of stable income (like recent pay stubs) and be prepared for a down payment. The critical takeaway is this: "No" is not the final answer. At Chevrolet GMC of Madras, we have strong relationships with reputable second and third-tier lenders committed to helping you rebuild your credit while getting the reliable transportation you need.

Whether you're a first-time buyer with a thin credit file, someone with low credit, or an individual whose income alone isn't sufficient, adding a co-signer to your loan can be a game-changer.

How It Works: A co-signer—often a parent, relative, or close friend with strong credit—legally agrees to take responsibility for the loan if you are unable to make payments. This added security for the lender can significantly improve your chances of approval and may even secure a lower interest rate. It's a powerful tool for young adults starting out or anyone working to improve their financial standing. We make the co-signer process straightforward, ensuring all parties understand the agreement.

Beyond the source of funding, you need to decide on the structure: Financing (Buying) or Leasing.

Financing (Auto Loan): You borrow money to purchase the vehicle. You own it after the last payment, free to modify, drive unlimited miles, and keep it long-term. This builds equity and is ideal if you plan to keep your GMC Sierra 2500 HD for many years or put high mileage on it for work around Jefferson County.

Leasing: You're essentially renting the vehicle for a set period (typically 2-3 years) with predetermined mileage limits. Monthly payments are usually lower than loan payments for the same vehicle. At the end of the term, you return the car or have the option to buy it. Leasing is perfect for those who always want to be in a newer model with the latest tech and who stay within annual mileage limits.

Our finance experts can run both scenarios for your desired Buick or GMC to show you the real numbers, helping you decide based on your long-term goals.