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Learn... Plan... Get a Vehicle Lease or Loan!

Financing Steps
  Step 1 - Should you buy or lease?
  Step 2 - Arrange for financing first
  Step 3 - Ask these key questions
  Step 4 - What about dealer rebates?
  Step 5 - Find the best rate
  Step 6 - Refinance after the sale
Calculators
  Should I take the rebate or special offer financing? (State Farm)
  How much will my monthly payments be? (State Farm)
  What's the true cost of the lease? (Bankrate)
  Monthly auto loan calculator with extra payments calculator
  Negative equity payment calculator (rolling previous loan balance into new loan)
  Rebate verus interest rate calculator
  What's the true cost of the lease? (Bankrate)
Tools
  Check current lending rates at Bankrate
  Visit online lenders at E-Loan and Capital One Finance
Arrange for your lease or loan

With the lowest price in hand from the previous section, you're ready to learn how to lease or buy that new vehicle with confidence.

Determine what's best for you, lease or loan
Everyone's situation is different, and the specifics of your driving habits can dictate whether or not you should lease or take a loan. Obviously, cost is also a consideration, and this is how many people end up with a lease when they should have gotten a loan. What's important is that you are aware of the differences so that you can make the best decision given your situation. Therefore, the first step is to determine what is best for you, a lease or a loan?

Pre-arrange the financing
If at all possible, it will benefit you greatly to pre-arrange your financing. Of course, there are situations and people who can get the best deal from a dealer, but these are customers who qualify for the dealer deals because they have a great credit score and a down payment (or a trade-in vehicle with some value). However, for many people, don't assume that dealer financing is your best deal unless you've checked out all the other options. Besides, to avoid any nasty surprises, especially because the financing deals are the last step in purchasing your vehicle, it's always nice to have a backup plan in case they don't want to give you a great financing deal. Check out the information on how to pre-arrange your financing.

Key questions to ask
If you are getting a loan, there are some key questions to ask to ensure that you get the best deal. For those considering leasing, there are also key questions to ask, and these are in the leasing section.

Dealer rebates
Another area of possible confusion is dealer rebates. What are they and who qualifies for them? If the dealer is offering rebates for your desired vehicle, make sure you are fully informed so that you make the best deal.

Make sure you get a good interest rate
Everyone knows that the dealership makes money on the purchase price of a new car, as well as some on the value of your trade-in. However, many people are unaware of the fact that the dealer also makes money when you finance the vehicle loan with them rather than your bank or credit union. Learn how dealers make money on financing and how you can find the best rate so that you get the best deal for your new vehicle.

Refinancing after the sale
Although it doesn't make sense very often, there are occasions when you can finance with the dealer to get a rebate, and then refinance your vehicle with your financial institution to get a better interest rate. Of course, you have to have good credit, you have to want to bother with this extra step, and you need to know that financially it's a good deal. This is one reason why it's always recommended that you pre-arrange your financing with your bank or credit union, knowing that you can use them later for a refinancing if this is in your best interest. If this is a possibility, then you want to make sure you understand what's involved in refinancing after the sale.

Other financing tips
By this time, you should be convinced that you should arrange your own financing for your vehicle purchase and not take the easy way by letting the dealer arrange it for you, unless of course they are offering a better deal. Typically this is not the case, but during certain promotions, such as 1.9% financing, the rate and terms may be advantageous, assuming that you qualify for the promotional rate. Just be careful that they don't try and switch you to a higher rate during the financing discussions.

Use the links below to discover a number of tools you can use to get fast, accurate figures so that you can make comparisons and arrive at the financial arrangement that works best for you:

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