FINANCING OPTIONS

"I'll pay cash."

Paying cash makes the transaction relatively simple:

• Negotiate the price of the vehicle you have chosen with the dealership
• Add in taxes and other costs (such as license, title, registration, etc.)
• Pay the dealership the total amount

However, not too many people have the money sitting around to pay cash. Most people either arrange to:

• Get a loan on their own
• Finance or lease the vehicle at the dealership

"I'll get a loan on my own."

If you decide to borrow the money you need from a bank, a credit union or other financing source:

• You will need to fill out a credit application
• If you are approved, you will be given a credit limit and issued a check (sometimes called a draft or bank draft made out to the dealership)
• The lender will hold a lien on the vehicle's title (and often, the title itself) until you have made all the agreed-upon payments
  • When the balance is paid off, you will get a clear title giving you full ownership of the vehicle. This is usually mailed to you
  • If you don't make the agreed-upon payments, the lender can repossess the vehicle and sell it to recover part or all of what is still owed on the loan

"I'll finance with the dealership."

Many people like the convenience of financing or leasing with the dealership. You can walk in, then:

• Choose a car or truck
• Fill out the dealership's credit application
• Negotiate the best price for your budget
• Decide whether to finance or lease
• If approved, often drive away in your new or used vehicle the same day