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Financing your Car

If you’re in the market for a new vehicle one way of obtaining that dream car is through financing. Financing comes in two forms that we will break down for you: direct lending and dealership financing.

Direct Lending

Borrowing money from a bank, a finance company or credit Union is direct lending. This loan will cause you to pay the amount financed and the finance charge over the term of the loan. You’ll use this loan to purchase the car and make monthly payments towards the loan.

Dealership Financing

Dealerships offer their own financing as well. The dealer will offer you a contract where you agree to pay the amount and the finance charge. Dealership financing is different than direct lending because dealerships can offer you a range of financing options. For example certain car manufacturers may have lower-rate financing options that the dealer can present to you.


So, which one is right for you? While direct lending offers you the chance to get pre-approved before walking into a dealership so you can have a firm budget, it’s important to look at a number of different items when making your decision. The length of the contract and interest rates are very important. The longer the length of the contract is, the more you will be paying for your car as interest adds up. It’s always a good idea to see what deals the dealership offers, but in the end, it matters that you find a deal that you’re comfortable with.


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