Buying a car is a big decision. Besides the year, make, and model, you have to think about financing and auto insurance before you sign the final papers. Many people walk into the dealership hoping to get financing, but to get the best deal, it is important to comparison shop.

There are many different institutions that offer auto financing, and different lenders specialize in different areas. Because of this, it is important to compare financing options and choose the one best suited for your personal situation. Having secured financing can also give you an upper hand in negotiations at the dealership.

When comparing financing, it is important to know your credit score. Your credit score affects the rate you will receive. Your credit score will help identify the type of financing best suited for your needs, as many lenders offer benefits for unique credit circumstances.

Things to Consider When Choosing Auto Financing

It is important to get financing with a low interest rate, practical down payment, and manageable payments, over a practical term.

  • Interest Rate: The rate at which lenders charge to borrow the money
  • Down Payment: A portion of the face value of a vehicle that buyers pay to secure financing
  • Term: Period of time over which the loan must be repaid
  • Payments: Dollar value of the weekly, biweekly, or monthly payment
Last updated on Friday, February 28 2020.