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Auto Financing 101: The Ultimate Guide for First-Time Car Buyers
What is Auto Financing?
Auto financing refers to the various methods of borrowing money to purchase a vehicle. It allows you to pay for a car over time, rather than paying the full amount upfront. The two main types of auto financing are auto loans and auto leases.
Auto Loans: An auto loan is a type of secured loan where the vehicle itself serves as collateral. You borrow money from a lender (such as a bank, credit union, or the dealership’s financing arm) to cover the cost of the car. You then make monthly payments, with interest, until the loan is fully repaid. Once the loan is paid off, you own the vehicle outright. (read more)
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What is Auto Financing?
Auto financing refers to the various methods of borrowing money to purchase a vehicle. It allows you to pay for a car over ti...