Automotive Financing FAQs

What Is Automotive Financing?

Automotive financing consists of placing a down payment on a vehicle. Typically, a car loan is then taken out to cover the remaining cost and is paid off over time. Once the car loan has been paid off, you officially own the vehicle.

Our financing experts can guide you every step of the way, including helping you secure a fair payment option.

What Is Automotive Leasing?

Leasing, on the other hand, is like renting a car for an extended period. Vehicle lease terms generally last between 24 and 36 months. At the end of the leasing period, the driver can:

• Return the lease
• Exchange the lease for a new one
• Finance the lease

Should I Buy or Lease My Next Car?

Depending on a few different factors, such as your specific driving needs and preferences, as well as your long- and short-term automotive goals, buying or leasing may be a better option for you at this time. A few questions you can ask yourself include:

• Do I want to own a car?
• Do I want to drive a new car every few years?
• Do I want to customize my car?
• Do I mind having mileage restrictions?
• Do I want to trade in or sell my car in the future?

How Do I Create a Budget for My Next Car?

When it comes to creating a budget for your next car, a common range to shoot for is between 10% and 50% of your current income. Within this range, a good rule of thumb is to pay no more than 35% of your pre-tax annual income.