What Can I Afford?
Financing Your Auto Purchase
When buying a car or truck, you have three options for financing it: you can pay cash, get a loan, or lease the vehicle. To help you understand these options, they are each explained below.
Paying Cash for a Car or Truck
Besides being the simplest way to pay for a car, paying cash gives you the best terms you will ever get. By paying cash, you avoid paying interest on a loan or lease, so buying your car will actually cost you less.
Loans are an agreement between you and a lender for a set amount. The lender gives you money for your vehicle purchase and charges you an interest rate on that money as you pay it back. This is one of the most common options that people use when buying a car or truck.
Auto loans can be arranged through traditional banks and credit unions, or through more flexible lenders. Traditional banks and credit unions typically offer loans only to well qualified (meaning high credit scoring) individuals with traditional income from employment. More flexible lenders will loan money for auto purchases to people with less than perfect credit, and those with non-traditional incomes like self-employment. Some flexible lenders even have better rates than traditional banks!
Leasing a car or truck is essentially a long-term rental agreement in which you pay for the right to use the vehicle. At the end of the lease term, you can purchase the vehicle for the price that you agreed on at the beginning of your lease, or return the vehicle back to the dealer.
Is one of these financing options right for you?
No matter which option you choose, we'll help you drive off our La Mesa lot in the car you want. If you want financing, we work with a variety of lenders. Whether you have great credit, bad credit, or no credit at all, we have an affordable financing option for you.