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 of us 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 is devoted to ways of financing your acquisition of 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 the loan length gets longer
  • The residual value of a lease
  • Estimating the monthly payment of a lease
  • Direct versus indirect financing of your vehicle
  • Dealer financing and insurance departments
  • Negotiating the best financing deal