Just as you should check out a few different dealerships before buying a new car, you should look into a couple of different leasing options when it comes time to finance your new vehicle. Be sure to find out the average auto loan rates in your area to see which banks offer the best rates. Credit unions are another option, and oftentimes offer up a better deal (typically, rates at credit unions are around one percentage point lower, which could save you a couple hundred dollars). If you choose to borrow from a financial institution, be sure to get pre-approved for your loan before you make a purchase.
Another option is to finance your car directly through the dealership.
Many consumers opt to finance this way, because of the ease of one-stop shopping. If you do choose to deal directly with the dealership, be sure to settle on a purchase price for your car, in writing, before negotiating any financing arrangements.
It is increasingly popular for consumers to lease a car in lieu of buying one. Leasing may be the right option for you if you prefer to drive a new car every two to three years; you will also pay lower monthly payments than on a traditional car loan. However, many leasing agreements come with a mileage limit (15,000 miles/year), and there may be additional costs for excessive wear and tear.
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