Often the salesmen at any auto dealership agency would ask you as to how would you fin`ance your new automobile. The query at times is confusing as auto finance would sometimes also mean that the dealership itself would provide you with the loan or would give you the automobile on lease.
Even though auto finance are available with the bank and you can get a loan easily but still there are a number of people who opt for getting finance from the dealer itself. Getting finance from the dealer would simply mean that you walk into the place sign the credit application finish a few formalities and then move out with the vehicle. However bearing in mind that the amount has to be paid. This is a good option as you can get your vehicle either on weekends or on days when the banks and the credit unions are closed.
However, getting finance from the dealer is easier to say than doing it practically. Before you decide on taking the finance from the dealer remember that you would have to pay more as compared to an auto loan taken from a bank. The amount would depend a lot on your credit rating. If you have an excellent credit score then you can get the finance at comparative rates as the bank offers, besides you can also be eligible for some of the special programs offered by the dealer which would lower your costs. But in case you have a bad credit rating or no credit then you would be charged a higher interest rate.
So when the salesperson asks you how are you going to finance your automobile you can give him any of the three answers:
You would buy the automobile
You would take the automobile on lease
You would pay cash for the automobile.
Now let us have a detailed look at all these three financing options.