Once you have decided upon the type of vehicle you would like to acquire, you must figure out how you will pay for it. You basically have three choices: pay all cash, which few people can do, buy the vehicle by making monthly payments over time through an installment loan, or lease the vehicle for a period of time. This module describes ways to finance a new or used vehicle.
In this module, you will learn:
- The difference between the purchase and lease of a vehicle.
- Benefits and drawbacks to leasing.
- How your credit rating affects your interest rate.
- Estimating your monthly payment based on interest rate and loan length.
- How total finance charges increase as loan length gets longer.
- The residual value of a lease.
- Estimating the monthly payment of a lease.
- Direct versus indirect financing of a vehicle.
- Dealer financing and insurance departments.
- Negotiating the best financing deal.