The Simplified Modern-Day Buying Guide

Three Ways to Buy a Car Today


So you have narrowed down your options and you’re finally ready to go take a look at a few vehicles in person. Time for a test drive! You pick out the perfect one, and now comes the decision – how are you going to pay for this? In this three part installment, we will cover your options: financing, leasing, or paying “cash” – either of your own or obtaining outside lending. For this installment, the focus will be around financing, including the answers to some questions we hear the most often.


What Is Involved?

Did you know that most transactions for vehicle purchasing are by financing these days? In a world where everything is credit-driven and most people don’t have tens of thousands of dollars at their disposal, it’s a great option. Understandably, looking at the viability of purchasing a new vehicle is more effective looking at a breakdown of payment options rather than the total amount you would like to finance. Some factors to consider with financing include what term you would like, how much of a down payment you would like to provide, as well as the debate of taking 0% or rebates (more on that later).


The other important aspect of a payment is the interest rate. Due to everyone’s credit being different, as well as the amount and time you’re attempting to finance, we quote payment ranges as opposed to a specific dollar amount. Just like gas prices, interest rates are subject to change, so if you ever have a question about what kind of interest rates to expect, feel free to talk to the business manager!


The Great Debate

In regards to things like term, down payments, and rebate options, it truly is not as overwhelming as it sounds. Typical term options include 48, 60, and 72 month terms. Here at Reed Chrysler, we usually quote 60 and 72 month options, which can give people a little bit of leeway if they are budget-conscious. Another factor that can to consider is a down payment; banks do like to see anywhere from 15-20% of the amount financed put down, although it is not always necessary. However, your down payment can also come in the form of your trade as well, so that is something to keep in mind if that applies. Lastly, there is always a great debate in regards to taking 0% or rebates and incentives. How do you know which is right for you? Well, the best way to look at it would be this: with rebates, you get that money taken off the price immediately. If you would potentially trade in a vehicle before your loan was paid off, you’ve already benefited from the rebates and don’t have to consider the fact that you’re missing out on the rest of your 0% interest rate for the remainder of your loan. It’s also important to note, the higher the amount financed, the more that you will benefit from the 0% offer as well.


What’s Next?

Once you get these options narrowed down, the next step in this process is filling out a credit application, which would allow the business manager to pull your credit history. Upon doing this, the business manager can make an informed decision about where to send your loan application. Sometimes the choices are straightforward – if you have a preferred lender, or if you receive additional incentives for financing through a particular lender, it’s quite simple. If you don’t, don’t sweat it! We will take all of the factors in consideration and send it to the best options we have for you. After that, the rest is pretty painless! Keep an eye out – after this installment, we will go over what the second half of the finance process is!


  1. […] sector will go over cash transactions and outside financial sources. Catch the first two regarding financing and leasing if you’d like! The least common of all transactions, very few these days truly […]


  2. […] how you’re going to procure funding for you new or new-to-you purchase (need a refresher? finance, lease, or outside lending/cash), so what should you expect from the business side of this deal? […]


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