Financing Options

Information About Financing Options:

“So, how are you going to finance your new car?”

When a dealer asks you this question, what are your options?

In the car business, the term financing means that the dealership will either provide you with an auto loan to buy the car or lease the car to you. Many people like the convenience of getting a loan through the dealership. Let’s look in more detail at each of these financing options, and a few other features we offer, so you can know what to expect at the dealership:


If you decide to buy the car and you want the dealership to help you finance it, you will be asked to fill out a credit application. Based on your credit score, an auto loan will be arranged through the dealership’s lending institution.

Most auto loans are from three to five years — 36 to 60 monthly payments.The longer you take to pay off the loan, the lower the payments will be. In addition, the amount of your monthly payment will depend on the interest rate, the length of the loan and the amount of your down payment.

While you are paying off the balance you owe on your car, the lending institution will hold the car’s title. Once all the payments are made, the car’s title is sent to you and you own the car.


If you decide to lease the car, you will also fill out a credit application. Based on your credit score, and the length of the auto lease you want, the dealer will shop for a lease for you. You will need to decide how long you want to lease for (usually three years). Also, you need to decide how much you want to pay up front.

Most auto lease contracts allow you to drive the car 12,000 miles a year. If you typically drive more than this, ask that the car lease be written for 15,000 miles or even 18,500 miles.

Your contract will contain a residual price for the car you are leasing. When you have made all the lease payments, you can then buy the car for this residual price. If you decide to return the car to the leasing company, they may charge you for excessive wear and tear to the vehicle. If the car is in great shape, you can get your security deposit back or use it to start the lease of another new car.

Biweekly Payments Option

With our National Payment Network (NPN) biweekly payment option, you can easily customize the timing of your loan or lease payments. Instead of making monthly payments, you will make a half payment every two weeks. This payment pattern will generate additional payments over time and gradually accelerate the payoff of your loan or lease. It will also help you match your payments to your paychecks, simplify your budgeting, and build equity faster. Even better, all biweekly payments are electronic so you no longer have to write and mail checks.

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