Need To Finance A Car?
When buying a new car, most customers choose between leasing and financing the vehicle. For more information about leasing, check out our Leasing page. Financing is relatively simple, but here are some basics about what it means to finance your vehicle.
What Is Financing?
When you finance a car, you are basically getting a loan from the bank or other financial institute to pay for the full value of the car. This allows you to negotiate the length of time it takes to pay back the loan, the interest rate you pay and your monthly payments. You can also reduce the amount of the loan you take out with any amount in a down payment. For example, if you buy a $20,000 car and put down $5,000, you're only getting a loan for the remaining $15,000.
Benefits of Financing
- Flexibility - with financing, you're not restricted to only getting a new vehicle. You can get a used one and resell it at a later date if you want.
- Leave Early - you can pay off the remainder of you loan at any time with no fees.
- Customization - because you're buying the car out, you can do whatever you want with the car including customizing it.
Remember that when you finance a vehicle, you own it completely. You can drive however much you want, customize it any way you want, and use it for any purpose without any sort of fees or penalties. You can also sell it at any point or trade it in towards a newer vehicle.
Getting started on a financing application is easy. Just fill in some basic information and our Finance Specialist will be in contact with you about how to move forward.
Leasing Vs Financing
While leasing will look attractive due to the lower monthly payments and smaller term, you also need to remember that if you lease a car, you don't actually own it. At the end of the term, you either return the car or buy it out. When you're finished your term while financing, you officially own the car.
Cash Vs Financing
When you pay for a vehicle with cash, you pay for the whole thing in one big lump sum. While it does eliminate future payments and interest, it's also a big hit to your bank account that could be used for something else.
For the same reason you would buy insurance for your car, you want to make sure you're protected. This includes when you're financing something large like a car. We offer many products and services to protect your investment.
Have more questions about financing a car? Read our FAQ and see if we have answered your question.