Understanding Vehicle Financing Financing Options You have two financing
options: direct lending or dealership financing. Direct Lending In direct
lending, you get a loan directly from a bank, finance company, or credit union.
You agree to pay, over a period of time, the amount financed, plus a finance
charge. Once you enter into a contract with a dealership to buy a vehicle, you
use the loan from the direct lender to pay for the vehicle. Direct lending may
offer you: Comparisons. You have the chance to shop around and ask several
lenders directly about their credit terms before you agree to buy a specific
vehicle. Credit terms in advance. By getting financing before you buy the
vehicle, you will know your rate and other terms when you are shopping.
Dealership Financing In dealership financing — another common type of vehicle
financing — you get financing through the dealership. You and a dealer enter
into a contract where you buy a vehicle and agree to pay, over a period of time,
the amount financed plus a finance charge. The dealer may retain the contract Autel
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union — called an assignee — that services the account and collects your
payments. Dealership financing may offer you: Convenience. Dealers offer
vehicles and financing in one location and may have extended hours, like
evenings and weekends. Multiple financing options. The dealer's relationships
with a variety of banks and finance companies may mean it can offer you a range
of financing choices. Special programs. Dealers sometimes offer
manufacturer-sponsored, low-rate or incentive programs to buyers Autel
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special requirements, like a larger down payment or shorter contract length (36
or 48 months). These programs might require a strong credit rating; check to see
if you qualify. Remember: Shop around before you make a decision about buying or
leasing. Consider offers from different dealers and several sources of
financing, including banks, credit unions, and finance companies. Comparison
shopping is the best way to find both the vehicle and the finance or lease terms
that best suit your needs.
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