"Auto Financing" is a general term meaning how you pay
for the vehicle. In most cases, cars are financed by
taking out an auto loan to buy or lease the car. This
involves getting a credit check. Financing your car
needs as much research and homework as choosing the car.
You can also get financing through the dealer or from
the auto manufacturer. It's possible that
dealer/manufacturer financing will cost you more, but it
isn't written in stone.
There will be occasions when a dealer will actually give
you the best deal. Unfortunately, those occasions are
not predictable (despite endless "must sell," "lowest
rates possible" and "no money down" advertising by
dealers) and the only way to be sure is by comparison
shopping. Interest rates on new cars are lower than on
used vehicles. And, in general, new cars can be financed
over longer terms than used ones. This equation can make
a new car cheaper than a used one in many cases. KEY
FINANCING FAQs:
What's the actual interest rate I'm going to pay |
