When it comes to financing a new car, you'll have two options: a loan or a lease. Each option has advantages, and the right choice often depends on your circumstances and preferences.

With a loan, you can drive your car for unlimited miles and for as long as you want. A car loan means you own the vehicle once it's paid off. This would generally result in lower long-term costs, especially if you're considering keeping the car for years. 

On the other hand, leasing allows one to drive a new vehicle over a pre-set period, usually two to three years. The monthly payments are generally lower than those for purchasing since you're not paying the full price.

Plus, since most lease vehicles are new, you'll probably be covered by a warranty for your use of the car. Once the lease term ends, you can buy out the lease, lease a newer vehicle, or simply return it to the dealership and walk away.

Both buying and leasing have their merits, which depend on one's financial situation, lifestyle, and vehicle preferences. Our finance center is here to walk you through the pros and cons so that you can make an informed choice. 

Your credit score is one key factor for getting approved and finding competitive rates. Understanding how it works and how to maintain a good one is essential for making informed financial decisions and maximizing your borrowing potential.

Your credit score informs the lender about your financial history—not only related to cars but also encompassing loans, credit cards, and other financial obligations—and how risky it is to lend you money. A strong credit score can open doors to lower interest rates and more favorable loan terms.

Knowing how credit scores affect auto financing may give you the power to ensure a convenient car-buying experience.

With a good credit score, you are likely to get more attractive interest rates and other favorable terms for your loan. On average, you're likely to qualify for new car loans with an APR of around 7.01% or better, while for a used car loan, you'll be able to qualify for an APR of around 9.73% or even lower when your credit score is at or above 661.

If your credit score is relatively low, you may receive higher interest rates or be required to make larger down payments. If you are actively working on improving your credit now, make sure you pay all bills on time and work on reducing debt.

It's definitely possible to get an auto loan when you're entirely new to financing, but you'll probably get more favorable rates if you have a credit history. Understanding your credit situation and working on improving it can make a significant difference in your auto loan or lease.