Master Types of Auto Financing Solutions Today
Dealer Financing
Dealer financing is another popular option, often providing added convenience as it allows you to arrange financing directly through the dealership. Many dealerships offer promotional low-interest rates or even 0% financing for qualified buyers, typically on new models or during special sales events2. However, these deals may require excellent credit and may include specific terms that could affect the total cost of the loan.
Lease Agreements
Leasing a vehicle offers an alternative to traditional purchasing, allowing you to drive a car for a set period while making monthly payments. At the end of the lease term, you have the option to purchase the vehicle or return it and lease a new one. Leasing often requires a lower down payment and offers lower monthly payments compared to buying, but mileage limits and potential fees for excessive wear can add to the cost3.