The Definitive Guide To Buying Your First New Car

Other Finance Sources

Other places to find car loans include your workplace, credit unions, organizations that you belong to, military assistance, and government assistance programs.

Leasing A Car (Return to Contents)

If you are having difficulty being approved for a car loan, you may be able to lease a new car instead. This is an option that may require you to put more money upfront. The major difference between owning or leasing a car is that you will be paying the depreciation value of the car as opposed to the entire cost of the car. In other words, you will be paying the manufacturer directly each month for the time you use the car instead of paying back a lender for buying a car that you will eventually own.

There are advantages and disadvantages to leasing instead of buying a car. You could end up spending more money leasing a car than buying it depending on the type of car that you lease. If leasing, you should opt for a short-term lease so that you will be covered by the manufacturer’s warranty for the length of the lease. You can sign a lease that gives you the option to buy the car for its depreciated value when the lease is up. This may buy you enough time to improve your credit or save up enough money to put down a larger down payment.

If you decide to lease a car, you should be aware of the following:

 You will only be allowed to use a certain amount of miles each year, so if you travel for business, you may want to find a car that has a higher allotment of miles for the year.

 You could pay a large fine for breaking a lease early.

 You cannot change the car’s exterior or interior in any way.

 Putting a down payment on a car that you want to lease will save you more money each month.

 Sign close end leases only. This will keep you from having to pay extra fees for depreciation when the term of your lease is up.

Financial Offers From Dealers (Return to Contents)

There are a variety of sales offers that dealerships will make each year as they try to draw more people to the lots to look at new cars. Some sales will offer rebates or a lower interest rate when buying a car. You should take a look at what these dealerships have to offer because you could save a lot of money.

When deciding whether to take the rebate, which is money you will get back after signing the paperwork and buying a car, or a lower interest rate on a car loan, you should figure out the total amount of the loan you will need in order to see which one is the better deal.

Depending on the amount of rebate and the total amount of the car, you may find that the lower interest rate will save you more over time. You should find out the interest rate of the loan if you decide to take the rebate. If the interest rate is not much different, then the rebate may be the better offer.

Many people do not consider their options and will usually only look at the amount of the rebate instead of the other offers.