Once you have settled on a vehicle, your purchase experience is not quite finished. Unless you are paying with cash, some type of financing may be required.
Most dealers offer many financial services and the choices can be daunting. Terms, interest rates, purchase or lease financing, contracts etc ... can be confusing and time consuming and what is best for you is not always clear. Researcing these options beforehand is always a good idea but often not done.
Nowadays when purchasing a new car, many manufacturers offer 0% financing deals, typically on past model years but also on new models as the competetive nature of the manufacturers and the decline of new car sales has forced lower interest financing to become more widespread.
These "deals" can however be misleading as they mostly apply to shorter term contracts which of course will drive the monthly payments up but this is not always the case, some manufacturers will finance your purchase over a 5 year period at 0% which is fantastic.
Be sure to ask your dealer about this type of financing option as using someone else's money to finance your purchase is a great way to go even when you do have cash.
Financing a used vehicle can be a little more difficult depending on factors such as age and type of vehicle being financed and interest rates and terms will vary greatly from dealer to dealer.
Again, be sure to ask your dealer who they are working with and be sure to read fully your finance contracts.
Leasing VS Purchasing
Deciding on whether to Lease or purchase your vehicle is another decision that can be difficult to make. Most people think that only new cars can be leased however there are dealers that will lease used cars too.
Leasing can be just an alternate way of financing a vehicle and is especially good for keeping monthly payments at a lower, more manageable rate that will fit your lifestyle and budget better than purchasing.
Yes you will pay more in the long run in interest charges but the smaller payment will allow you not to be burdened by huge car payments and With the prices of vehicles today averaging over $20,000, monthly payments can become an issue.
Other advantages of leasing VS purchasing can be :
The ability to drive a more luxurious model or get more features than if you financed due to the lower payments.
Lease terms are shorter than most finance terms so you can drive a new car more often.
Drive a vehicle during its most trouble-free years when it is still under warranty in most cases and repair expeses are kept to a minimum.
Taxes are paid as you go on individual payments and not in one lump sum at the time of purchase.
Different tax implications for business owners/operators.
Of course leasing is not for everyone and again do the research before choosing the lease option, most dealers will give you good information about both options and there are many internet resourses available to help you in your decision making process.
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Financing