Car Finance options seem pretty cut and dry at first. You either take out a loan or enter into a lease agreement to pay for your car. But even if you know the answer to the loan/lease question, the world of car finance can quickly become complicated.

This guide is designed to answer the major questions we constantly get asked, as well as provide tools, such as a car loan calculator, that will help you through the process. Hopefully, you’ll find it useful in determining the best way to handle your car financing.

You can also make any alterations to the car you’d like, because after all you own the vehicle — unlike a lease where you return the car when the lease is up.

Car Lease – A car lease remains a popular car financing option for those who want to keep their monthly payments low. It’s also a good method of finance for those who like to get a new car every two to three years.

Refinance Car Loan – You should consider a refinance car loan if you received less than favorable terms during your new car purchase. This is an especially good option if your credit has recently greatly improved and you can now qualify for a much lower rate.

The most popular way to finance vehicles continues to be through a car loan. With a car loan, buyers normally make a down payment and then monthly payments thereafter. After people complete the payments on a car loan, they own their vehicles free-and-clear, unlike leases.

When considering your options on car loans you have to make several decisions. The first is how much you can afford. The monthly payments should fit comfortably within your payment. You also have to figure out how much of a down payment you’d like to put down. The amount of your monthly payment on car loans can be decreased with a higher down payment.

Also figuring into new car loan payments is the interest charged on the sum you borrow. The interest on car loans will vary depend your credit and whether any specials are offered by the manufacturer.