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Auto Loans

Buying a Car

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What is an Auto Loan?

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How Does an Auto Loan Work?

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Consider What You Can Afford

Buying a Car vs. Leasing a Car

Buying a Car vs. Leasing a Car

Before deciding to lease a car, determine how much you can afford to pay before, during, and after the lease. The most common type of auto lease is a closed-end lease. With a closed-end lease, you may return the vehicle at the end of the lease term, pay any end-of-lease cost, and walk away. Leasing a car might allow you to drive a newer car with lower monthly payments but will likely have mileage restrictions. Maintenance costs may also apply, like repairing scratches or dents.

Know the Costs

When purchasing a car, understanding all the costs involved is crucial. After you include your down payment and the trade-in value of your current vehicle, you may still need to secure a loan to pay the remaining costs. To get the best deal, calculate the upfront costs, such as upgraded features, service plans, taxes and title costs. Before deciding on the loan length and payment options, calculate the upfront and maintenance costs to see which choices work best for you and see how much you will pay in total for your auto loan.

Understanding the Terms of Your Auto Loan and the Documents You Will Sign

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Frequently Asked Questions

Last Modified on 02/04/25