What Is Financing?

January 29th, 2018 by

People Buying A Car

If you’re in the Sarasota market for a car, then you’ve likely asked yourself: What is financing? In short, automotive financing means:

  • You finance the car over time with a loan or a lease, rather than paying for the vehicle in full up front.
  • You consider how much you can afford each month for your finance payments and whether you want to own the car eventually or upgrade to new models more often.

Types of Financing

There are two major ways that drivers finance their vehicles, and each has its advantages and special considerations.

  • Financing with a loan: Most consider taking out a loan to be the traditional form of automotive financing. Financing a car with a loan allows you to own the car in full. Pay close attention to the interest rate, the loan term, and the total loan amount when you choose this option.
  • Financing with a lease: Leasing a vehicle is another popular way to finance. When you sign a lease, you’ll only pay for a portion of a vehicle’s cost. Down payments and monthly costs are typically lower, but you’ll also need to be aware of how far you drive and the condition of your car, as there are mileage limits and fines for extensive wear, tear and damage.

Financing at the Dealership

There’s a difference between arranging automotive financing with a bank and going through a dealership, as you would with the finance department at Cox Chevrolet.

  • Bank financing: This means of financing means you go directly to a bank or other lending outlet to apply for a loan. They will pre-approve your financing request before you go to the dealership based on your credit score, the type of vehicle you want, and more.
  • Dealership financing: At a dealership, the finance team will collect any necessary information from you and forward it to one or more automotive lenders. These lenders will then provide a quote, and you can negotiate with the dealer for better terms if necessary.

Finance Your Next Vehicle with Cox Chevrolet

No matter which route you take, contact the team at Cox Chevrolet to learn more about how you can finance your next vehicle so you can hit the Tampa roads right away!