1. What are the benefits of financing a car?

   When buying a car, you have two options: take out a loan to finance the purchase, or pay for it in cash. One notable benefit of financing is that it frees up money for investing. Therefore, if you have good credit and plan to buy soon while rates are low, financing your purchase could be the smarter move.
   
2. What are the benefits of leasing a car?
   On the surface, leasing can be more appealing than buying. Monthly payments are usually lower because you're not back any principal. Instead, you're just borrowing and repaying the amount that the car depreciates in the time you have it, plus any finance charges. Here are the major advantages of leasing:
   • You drive the car during its most trouble-free years.
   • You're always driving a late-model vehicle, and one that's usually covered by the manufacturer's warranty, which may include free oil changes and other scheduled maintenance.
   • You can drive a higher-priced, better-equipped vehicle than you might otherwise be able to afford.
   • You don't have to worry about fluctuations in the car's trade-in value or go through the hassle of selling it when it's time to move on.
   • There could be significant tax advantages for business owners.
   • At the end you just drop off the car at the dealer.
   
   
3. What is the difference between leasing and financing a car?
   The primary difference between leasing and financing is in the ownership of the car. While you are financing a car, the lender holds a lien against your car. With a lease, you must either return the car to the dealer when your lease ends, pay your residual value to purchase your vehicle, or you can get into a newer model of the same brand. Manufacturers often provide great incentives to current owners.
4. My lease is ending, what do I do?
   When your lease ends, you have three end-of-lease options.
   Option 1: Get into a new vehicle
   Option 2: Keep your current vehicle
   Option 3: Return your vehicle
5. What is a Lease Pull Ahead?
   A manufacturer supported Lease Pull Ahead program typically occurs only a couple of times per year. Our dedicated Lease Specialists can still help you get out of your current leased vehicle and into a new one often without your monthly payment going up.
6. How do I know whether other warranties apply to the car?
   Used car dealers are required by federal law to post a Buyers Guide in every used car that they offer for sale. The Buyers Guide contains important information for consumers, including whether the car comes with a written warranty. If a dealer is offering used cars that do not have a Buyers Guide posted on them, you should consider going to another dealer.
7. How does credit score affect buying a car?
   The risk of loaning you money is determined by your credit score. Usually, the higher your credit score is, the less risk you are of defaulting on the loan. This means you will be able to borrow more money at a lower interest rate.
8. How do lenders decide my auto loan rate?
   
   
• Your Credit Score    
  The single biggest factor in determining your auto loan rate will likely be your credit score.
  Lenders use credit scores to gauge your financial responsibility, history and reliability. Your score can be affected by factors like on-time payment history, number of open credit lines, age of credit history and derogatory marks.
• Debt-to-Income Ratio
  Debt-to-Income Ratio is a simple and intuitive measure of your ability to pay a prospective lender back. Having a lot of money in outstanding debts could decrease your perceived reliability as a borrower, and result in less friendly terms. The more income you have available, the more confidence the lender will likely have that you will pay them back, and you may be rewarded with more competitive terms.
• Amount Borrowed and Down Payment
  Lenders determine auto loan rates not only by accessing your credit worthiness, but also by considering how much they're going to have to lend. Paying a significant portion of your auto loan via down payment can signal to a prospective lender that you can and will pay off your loan in a reliable manner. Similarly, borrowing an especially large amount of money or offering little or no down payment at all will up the risk for the lender, probably resulting in a higher interest rate to balance out the lender's exposure.
• Age of Vehicle
  Generally, loans given out for used cars come with higher interest rates than those for brand new vehicles. This may seem counter-intuitive, but it makes sense considering that older cars have already begun to depreciate in value. Car dealerships have less to gain by selling less expensive cars, and used car loans often come with shorter terms.
• Length of Term
  Just like with the other factors, lenders will try to hedge their bets when it comes to the length of your term. The shorter the term of your loan, the quicker the lender can expect to get their money back, and the friendlier the terms usually will be. Keep in mind that while a short-termed loan may come with noticeably lower interest rates, your payments will likely be higher and the loan could put relatively more stress on your budget.