New Car Information

New Car Loans - New Car Search

There are a number of ways to finance a vehicle with a new car loan but in the end it really comes down to a choice between buying a vehicle or leasing it.

Buying a vehicle is a fairly simple process. You borrow money from a bank or other lending institution either directly from them or indirectly through the dealer and then make regular monthly payments until the loan balance is paid off. As the loan is paid off you gradually gain equity in the vehicle (the current vehicle value less the amount owed) until you eventually own it. During this time, you are free to drive it as many miles as you’d like. And while you need to have full coverage insurance while the loan is in force, once the loan is paid off, you are free to have it covered by just the minimum insurance required by state law.

Leasing, your other choice, also has its advantages, although not nearly as many as just a couple of years ago. Depending on the model that you choose, leasing can still result in a substantial monthly payment savings. This is especially true for many European and Japanese makes. Domestic manufacturers, with their past reliance on big truck and SUV sales, have taken a big hit recently in used car values that has affected their ability to offer competitive lease payments.

In any case, with a new car loan based on a lease you also make monthly payments, but with a much shorter duration – normally two to three years. There is usually no down payment and, once you’ve enjoyed what is arguably any vehicle’s most trouble-free years, you return it to the dealer and start the process all over again with another new car. You can also choose to walk away and lease another model from another dealer.

So what questions should you know in order to make a decision of leasing or buying? Here a few:

Do you always want a monthly payment?

When you buy, you will eventually pay off your loan. With leasing, you go from one loan to another.

Do you normally take good care of your vehicle?

When you buy a car you can trash it out to your heart’s content. Once it’s paid off it might look like the inside of Animal House’s Delta House, but the bank could care less. Try the same thing with a leased vehicle, however, and the bank will likely hit you with “excess wear and tear” fees that could be substantial.

Is your yearly mileage likely to remain the same?

Despite reports to the contrary, high-mileage drivers shouldn’t necessarily shy away from leasing. If you drive a lot of miles, build those miles into the lease up front, along with an extended service contract. Most cars with 75,000 plus miles on them are worth considerably less and building this into a lease might actually save you money.

The problem only rears its ugly head if you drive considerably more miles than you first anticipated – resulting in steep over-mileage charges, or if you drive considerably fewer miles than you anticipated – resulting in wasted dollars paid out.

Auto Financing

We all need to travel and for most of us our choice is a car. To buy a new car most of us need a new car loan. This loan will have an impact on your finances for the next two to three years. A car loan is considered secondary only to a home loan so it is very important when getting a new car loan that you do it wisely.

Buying a new vehicle whether it is a sports-utility, sports vehicle, economy car, sedan, coupe or any other type, it will change your financial situation each month. Before you get a new car loan there are several things you should do first. It is vitally important that you do not just purchase the first vehicle you have been approved for a new car loan. You may, and probably will, discover later that you could have received a much better deal.

You absolutely need to be an informed consumer. This means you need to do some research. Go online and visit many different financing sites. Try to get a pre-approved new car loan. This will help you with negotiations when you enter the dealership to purchase your new car. Remain firm with the amount of a monthly payment you can afford. Do not be persuaded into making a decision that will put you in financial distress later.

Many internet financing sites have a tool called a loan calculator. This is a tool that you can use to determine exactly what you can afford each month. Take advantage of this tool. It is very simple to use and instantly you can see what you can truly afford for a new car loan.

Researching at available internet sites the different vehicles you’re interested in buying and comparing it to other vehicles may provide the realization that the vehicle you desire is just not affordable. You will find that lowering your standards will make getting a new car loan feasible rather than a long shot.

Be a smart consumer. Shop around for the financial institution that will get you a new car loan with the lowest interest rates (which makes a significant difference in your monthly payments). There are many aspects of getting a new car loan. It can be a simple procedure by being armed with your qualifications before filling out a loan application. 

Stay firm - do not be swayed from your pre-determined decisions and your new car buying experience can be a very exciting experience that will leave you smiling and your head held high. You can be a smart consumer!