does it mean you can have the company pay for the down payment or what
2007-04-26 07:01:47 · 14 answers · asked by Jay-C 1 in Cars & Transportation ➔ Buying & Selling
It means YOU have the option to put a down payment on the vehicle, which lowers your monthly payment.
Financing means that they allow you to make payments towards the total value of the car.
Sometimes a dealer will have a mandatory out-the-door fee of about $2000-$4000 dollars, depending on the vehicle.
When you finance it, you can basically rent, or lease to own.
You would want to rent, and maybe select a 2-3 year contract. Your payments will be much lower. Play around with it online, all the manufacturers have auto-quote calculators.
With any car having a retail tag obove 30-34 thousand, I would put a 5-10 thousand dollar down on it. Below that, you dont really need a down. Most dealers accept your old car as a down payment, even if you are making payments on it.
Check out POWER, or Carmax. They pull off the craziest deals.
2007-04-26 07:03:47 · answer #1 · answered by sbravosystems 3 · 1⤊ 0⤋
If you borrow money to buy a car you are financing the car. Usually banks or credit unions will lend you the money to buy the car but they will hold a lien, or keep the pink slip until the loan is paid off. While the loan is active the bank will set up a payment schedule for you to make payments which usually occur monthly. The bank will also charge interest which is the cost to you for the use of the banks money. When shopping for a car also keep in mind that unless you are going to pay cash for the car you should also shop for the loan. Banks charge different amounts of interest when they loan their money. A better credit rating will get you a better deal on the loan. Also banks will usually charge a lower interest rate on newer cars as opposed to older ones.
2007-04-26 07:20:39 · answer #2 · answered by Milt P 2 · 0⤊ 0⤋
Financing means you take a loan to pay for the car. Then you make payments to the bank that made the loan to pay off your car.
2007-04-26 07:34:15 · answer #3 · answered by Bill in Kansas 6 · 0⤊ 0⤋
You do not have the CASH to pay for the car in full. You can "BORROW" from a bank or finance company and then you make monthly payments. These payments will allow you to have the car now but you will have to continue to make payments to the "Lender". These payments are partly for the payment of the car and partly for re-paying the lender. You have to pay the lender a fee for borrowing their money. BE CARE FULL!! Some interest rates (profit to the lender) can become very costly.
Example: You want a car priced at $10,000.00 and you only have $5,000.00. You borrow $5,000.00 from the lender so you can have the car. Now you have to pay the lender back the $5,000.00 plus interest. The interest can be anywhere from 6% up to 24%. The profit for the lender is (money borrowed times the interest percentage) Your $10,000.00 car can cost you an additional $1,200.00.
2007-04-26 07:16:29 · answer #4 · answered by RICK C 2 · 0⤊ 0⤋
it means that you take a loan out from a bank to pay for the car. the dealership gets the money upfront (the bank will issue you a check to give to them) and you then pay the bank a certain amount each month plus interest over the term of the loan (mine was $15k over 5 years at 5.9%...about $300/mo.) being that you are only 16, you cannot enter into a legal contract and would have to get a parent to help you. the bank technically owns your car until the loan is paid off so you have to have full coverage insurance. that way, if you get in an accident and the car is damaged beyond repair (totaled) the bank will be paid back for the value of the car by the insurance company. you will still be responsible for the difference between the value and what you owe unless you purchase "gap insurance" which usually costs around $500 and will cover the extra.
2016-05-19 03:55:53 · answer #5 · answered by ? 3 · 0⤊ 0⤋
IT means that you are going to get a loan to pay for the car. This does not include down payments, if a down payment is required.
2007-04-26 07:04:31 · answer #6 · answered by Anonymous · 1⤊ 0⤋
It means you get the loan through a bank and you have to pay the bank back each month.that's called you car payment.You don't have to have a down payment for a car,It would be good if you had some money to put down on it but it is not a Must
2007-04-26 07:05:51 · answer #7 · answered by Dew 7 · 0⤊ 0⤋
It means that you (or the dealership) has to find a bank or financial institution to cover the cost of the car. You will need to make monthly payments (plus interest) until the car is paid off. The down payment will be your responsibility.
2007-04-26 07:04:37 · answer #8 · answered by Jen 3 · 0⤊ 0⤋
you are borrowing money from a bank or financial institution. Until you pay the full amount back, the bank can repo the car for failure to pay. length of payback varies. but the loan is a fixed payment installment for "x" months. down payment is out of your pocket. usually is used to show the bank that "you promise to pay them back" because if you don't they will take back the car, and you don't get your down payment back.
2007-04-26 07:11:03 · answer #9 · answered by Mr. RN 3 · 0⤊ 0⤋
I means you will be paying off the car in monthly installments with interest.
The company or bank that has loaned you the money to buy the car, is "Financing" your purchase. Using their finances to buy the car, and you pay them back.
2007-04-26 07:05:14 · answer #10 · answered by gromit801 7 · 0⤊ 0⤋