Financing your vehicle involves making some critical decisions. We will help you take the guesswork out of financing and make sure you are prepared with sound advice about the different kinds of financing options available.

To get the best price possible, it is essential to figure out which financing scenario is right for you.

Leasing

Pros:
• Generally, your base monthly payments are lower. You are essentially paying for the vehicle's use over a specific period instead of its entire value, so lease payments will often be lower for you than purchase financing payments.

• You can drive a new vehicle more often.
• You still have the option to purchase the vehicle at lease-end.
• Monthly sales tax may be lower.
• There are no trade-in hassles at the end of the lease.
• You may be eligible for special deals or discounts.

Cons:
• There are mileage limits, typically 10,000-15,000 miles per year. Usual charges include anywhere from 10 to 15 cents for every mile over the limit.
• You may be charged excess wear and use charges.
• You do not own the vehicle, so you do not build equity.
• You may be charged an acquisition fee.
• You may be charged a disposition fee.
• It may be expensive to terminate a lease early if your driving needs change.

Purchase Financing (Buying)

Pros:
• You will eventually own the vehicle.
• You are not limited to specific mileage bands for the term of the loan.
• You can choose your contract's term length.
• You can establish good credit history.
• Vehicle buying is more economical in the long term.

Cons:
• Depending on the term, finance payments are generally higher than lease payments.
• Resale value of the vehicle can be significantly lower at the end of your term.

Buying With Cash

Pros:
• You own the vehicle.
• You do not incur interest.
• You may garner special deals or discounts.
• There are no restrictions on the number of miles you drive or extra charges for excess wear and use.

Cons:
• The only con would be if you can't afford it.

Rebates and Financing Incentives Advice
Figure out your monthly payment and overall vehicle cost for both the rebate and financing incentive.

If you want to make a large down payment to lower your monthly payment, take the cash back rebate.

Research third-party sites and find out if your desired model is being redesigned. Rebates and financing Incentives may be higher right before a redesign is released.

As dealerships like to keep vehicles moving quickly through their showrooms, you could secure a rebate or financing incentive if the vehicle has been around for six months or longer. To check, locate when the vehicle was manufactured. This date is located on the inside of the driver's side door. If the date is six months or more prior to the current date, you may receive a rebate or financing incentive-you just have to ask for it.

Keep in mind that qualifying for certain financing incentives may require a good credit rating.

Depending on which state you live in, if you sign a rebate over to the dealer, you may not have to pay sales tax on that amount. Check local tax laws.

Remember that rebates and financing incentives have expiration dates.