I Can’t Afford a Car, or Can I?

Is it time for you to get a new car and you have finally found the car of your dreams? Chances are, you are not going to be able to afford to pay for the car in cash. This does not mean you can not afford a car; there are ways to get the car you want without breaking the bank. An auto loan can be the best way for you to get the financing that you need on a new car. You can also lease the car from the dealership to save on monthly payments.

Payment Options

When you lease a car, you are basically renting it, like you would rent a house. You pay a monthly fee for a set number of months in order to use the car. Leases can be one year long or they can be multiple years long. The big advantage to leasing a car is that the monthly payments are lower than they would be if you got an auto loan. When you lease, however, you have to be aware of a few factors. For one, there is usually a certain number of miles you can drive during the life of your lease and if you exceed the number, you will have to pay a fine. When the time comes for you to return the car, it has to be in decent condition or you will get charged a fee.

You can buy a car and fund it using an auto loan. When you pay off an auto loan, you pay it monthly over a certain length of time. You will be assigned an interest rate based on your credit score. The benefit of buying is that auto loans are usually less complex than leases, even though they have higher monthly payments. If you do not like the terms of your loan, you always have the option of refinancing your loan. Hardly anyone can afford to pay for a car without using an auto loan or a lease. Just because your bank account is not full of money does not mean you cannot afford the car of your dreams.

Getting the Right Car

The big decision you have to make when getting a new car is determining what you can afford. When you find the right lender, they will help you figure out how much they can loan you and what type of payment plan fits your budget. The right funding can help you get the right car for you. When picking out a vehicle and the funding that goes along with it, always remember that your financial well-being is more important than having your dream car.