You’re taking a step into adulthood and purchasing a new or pre-owned vehicle. This is a big moment. And there are several factors to consider. For example, the car’s color, what upgrades you want, and how you’re going to pay for it.
Be it at the Mazda dealership in Rockdale or another location, you need to consider the method of purchase even before you step onto the sales floor. To get a framework under your belt, here are three auto financing options to consider.
Leasing
While leasing has been given a bad rap from some, it’s still a viable option when you don’t have enough money to buy a car outright. Consider leasing as a form of renting your vehicle with the ability to buy. Compared to some other plans, leasing payments are normally lower and require a smaller or no down payment.
If there’s a downside, it’s that you need to be a very careful driver while it’s leased. Well, maybe that’s an upside. Also, you don’t get any trade-in value on your next car because this is essentially rented, not owned.
Financing through the dealership
If you find the right vehicle at the Mazda dealership in Rockdale, then you’ll be given an option to finance with the company’s lender. In most cases, the interest rates are at or slightly higher than your bank. In addition, you may have an option to put no money down and have a higher monthly payment.
Co-signing a loan
Younger buyers may not have enough credit to get financing on their own. In that case, they can work with a co-signer, perhaps a parent or another relative, who will be their security if the loan isn’t paid. In this financing method, you need to ensure payments are made on time.
