Easy Auto Finance Guide

This guide is designed to help you make the right choice. There a three main ways to auto financing:

Auto Loan – This is the traditional way and probably the simplest. It involves borrowing money to pay for your car. The big benefit is that once the loan is paid of, the car belongs to you. In addition, you can make any changes to the car without incurring any penalty as the it belongs to you. Take out a auto loan if:

• You want ownership at the end of payments
• You plan to put 10,000 – 15,000 miles a year on your car
• You want to keep the car for a number of years

Car Lease – This is a good option if you want to keep your monthly payments low and you intend to change your car every two or three years. With this option, the car must be returned after the lease is up. In addition, you cannot make alterations to the car in most cases or you have to seek permission to do so. Take out a car lease if:

• You don’t intend to keep the car for long
• Want lower monthly payments
• Don’t want to spend money on the car after warranty expires

Auto Refinance – This is the best option if you did not have good terms when you financed your car. You can refinance in order to get lower interest rates and a better contract overall. This is especially recommended if your credit rating or credit score has recently improved.