Auto Finance – Choosing a Vehicle

The question of deciding which vehicle to buy and how to pay for it are to a degree linked together, but it is a good guide to first of all decide what type of vehicle you want to buy or lease, before deciding how to pay for it.

There are many reasons for this, but perhaps the most obvious is that deciding what sort of vehicle or car is best viewed will then lead on to clarifying with you buy a new or a used model, and whether or not you decide to finance it through the dealer or some other financial institution.

The decision about what type of car to buy is also linked to whether or not you want to lease the vehicle. Many people do not seriously consider leasing a vehicle because they consider it to be something more suited for the corporate market, whereas in fact many auto manufacturers go to great lengths to make leasing available to private individuals.

Starting off by choosing a vehicle can involve many different factors. It is a good idea to have some idea of what your priorities are for the use of the car, and some of these will be self-evident. Certain people will more naturally gravitate to a car or vehicle that is necessary for family and children, other people gravitate towards a more sporty or faster type of vehicle.

Depending on where you live, there will be certain models of car available that are country specific, and there are also likely to be certain finance deals that are also country specific relating to interest rates or down payments.

It is a good port of call to first will check out the main manufacturer’s website for the country in which you live, and see what vehicles are available in that country and if any special deals are on offer or likely to be in the near future.

Once you have decided what sort of vehicle is most appropriate, it is a good idea to check out the list price for that vehicle, often referred to as the manufacturer’s recommended retail price or similar.

It is important to know that auto dealers have a significant amount of room to negotiate on the list price, as well as having flexibility on the size of the down payment and the rate of interest that is being charged.

If you decide that you would really like a new car, then it is well worth considering the option of leasing it. While there are many conditions inherent in a lease that need checking, the principle of leasing a vehicle is fairly similar in many ways to that of renting something.

You would effectively pay a down payment on the car, agree a fixed period of the lease which can be anything from 24 to 60 months, and agree certain other costs applicable to the lease. For many people leasing a vehicle is a relatively cheaper way of buying or having a new car when they would not be able to afford to buy it outright.