Have you read about car financing in the past? Do you really want to know more about it? Do you have the skills to negotiate with a seasoned car sales agent? Do you know that it is possible to finance a car through dealership? Do you know that the person financing the car would be working on commission? This small article will open your eye to a lot of possibilities about car financing.

Some of the things that get added on the last of the deal includes, but not limited to the following:

  • Alarm systems
  • Undercoating, and
  • Warranties

Dealers usually make a lot of money from these options. It is the sole duty of the finance person to educate you about the terms and conditions of the contract;

  • the interest rate you would have to pay, and
  • It is up to you to know whether you are getting the real deal plus some things you would really need to watch out for.

If you are buying the car, it means you are solely financing it via either of the following:

  • A family member
  • Credit union
  • Bank
  • Dealership and/ or
  • Online financial institute

If you are opting to finance your car instead of paying cash, then it is necessary to do a proper homework- this will help you to get a great financing deal.

Why paying cash is said to be the best option

car-leasing-contractOvertime, people have opted for paying cash. This section will teach you why paying cash would be in your best interest:

  • Pay cash if you have a poor credit rating, and would be paying a high interest rate
  • If you are indebted to a lot of people or organizations already, but have some cash with you and wouldn’t like to damage your credit rating.
  • You can use a novated lease calculator to work out the best deal before signing anything

Now, let us talk about pros and cons of car financing. This will surely help you to determine the suitable rate for you.

Sources of car lease financing

The good news is that you can obtain a good car lease in several ways:



  • fast,
  • efficient,
  • highly competitive and
  • convenient


  • high pressure

Credit union or bank


  • personal service
  • competitive rates, and
  • no sales pitch
  • offers disability or free life insurance policy
  • provides simple interest loans


  • difficult to set up, and not very convenient to users.

Online financial institution


  • quick
  • easy
  • competitive rates


  • you are dealing with an unknown or familiar corporation
  • it is not a personal service
  • there are chances you might be scammed and many more.

Home equity loan


  • competitive rates
  • interest can be deducted from your taxes


  • it might be risky to tie your car to your home

Friend or family member


  • easy
  • fast
  • competitive rates
  • flexible
  • personal service


  • this could jeopardize a flourishing relationship