Car Financing Overview

Four main factors determine how creditors decide to give you a car financing offer:

Vehicle Selection
cost, age, and mileage

Application Information
employment, residence, and income information

Credit History
information contained in your credit file

Down Payment
total of cash and trade equity

To get the best car financing offer, you should select a vehicle that fits your budget and provide as much down payment as possible. These two factors alone may increase your likelihood of approval, could improve your offer, and will reduce your monthly payment.

Factors affecting your monthly payment

Your monthly payment is determined by three major factors listed below in order of impact:

Amount financed

Term or length
of contract

Annual Percentage Rate (APR)

Which is better, lease or finance?

It depends on what's most important to you. All of us have different lifestyles and priorities — in cars, life, and in finances. Car lease-versus-finance decisions must be made with your own lifestyle and priorities in mind. What's right for one person can be totally wrong for another. We have a team of finance experts that can help find the best option for you – call any Go Auto dealership to schedule a free consultation.

Lease

If you enjoy driving a new car every two or three years, want lower monthly payments, like having a car that has the latest safety features and is always under warranty, don't like trading and selling used cars, don't care about building ownership equity, have a stable predictable lifestyle, drive an average number of miles, properly maintain your cars, are willing to pay more over the long haul to get these benefits, and understand how leasing works, then you should lease.

Finance

If you don't mind higher monthly payments, prefer to build up some trade-in or resale value (equity), like the idea of having ownership of your car, prefer paying off your loan and being payment-free for a while, don't mind the unexpected cost of repairs after warranty has expired, drive more than average miles, prefer to drive your cars for years to spread out the cost, like to customize your cars, expect lifestyle changes in the near future, and don't like the risk of possible lease-end charges — then you should finance.