You do have quite a few options for car financing. The big question is whether you will buy for cash, lease with option or finance. If you are going the car financing route you will want to make a few comparisons with finance companies and banks. These days interest rates are through he roof. Credit scores are tumbling and unemployment due to downsizing has taken its toll on the people whom they once were deemed creditworthy.
One option is to get car financing from the manufacturer. A lot of manufacturers have gone into the financing business. GMC, Nissan and Volkswagen all have financing available when you purchase one their vehicles. You can also use a buy- here, pay- here option as some dealerships are financing their own sales. This is usually with a very high interest rate. Most times the payments are low and they stretch it out for a very long time. If you do this you can always avoid the total interest by making double payments. The sooner you pay it off the cheaper it becomes.
Lately there have been a new development in car financing options as there are Internet based loan companies that are willing to lend to just about anyone. It is easy for most people to get approved by these than regular institutions. Again the interest rate is a little bit higher and they will repo quicker but it is a viable option for some. The lender will hold the title to the car until they get your last payment.
Getting a personal loan is an option some people use to avoid the hassles of finding car financing. Sometimes you can borrow the whole amount and just pay cash to dealer and you aren’t stuck with high finance charges as rates on personal loans differ greatly. Still another option for car financing is taking over the payments from a private seller. Referred to as pre-existing owner financing this option can be a godsend for those experiencing hard times and less than perfect credit.
What ever you decide knowing where to go and what to look for will get you the car financing you need