Car Financing Options

Business concept of auto on dark background.With prices of new cars averaging more than $30,000, you may be wondering about your car financing options. The two basic categories of car financing options are direct lending and dealership financing. Learn more about these two options below.

Direct Lending

Direct lending involves acquiring a loan directly from a bank, credit union, or other financial institution. You and the lender will come to terms on a contract for paying back the loan. With the direct lending option, you can shop around for the best rate and credit terms. You’ll know exactly how much you can afford before starting the car buying process.

Dealership Financing

Carcierge can save you hours of waiting at the dealership with a pre-scheduled finance appointment. The dealership should present you with multiple options, based on their relationships with financial institutions. If you have a strong credit rating, they may be able to offer special programs, including loans with lower rates, or an introductory period with no payments.

It may also be the right time to investigate the possibility of leasing your car. Leasing offers lower monthly payments and the advantage of always driving a late model vehicle covered under warranty. At the end of the lease you have the flexibility of either purchasing the car or leasing another brand new vehicle.

With either financing option, your contract will include the following:

  • Your interest rate/finance charge
  • The amount being financed
  • The amount of time you have to pay back the loan
  • The amount of your monthly payments

Carcierge works to save you time, money, and stress by comparing financial institutions to help you find the one that’s best for you.