Auto Financing Options
Clear guidance on choosing between a loan and a lease.
Target price: $62,800
- Financing decisions depend on the specific vehicle.
- Select a vehicle to unlock more relevant insights – or continue with general guidance below.
How to think about financing
Your financing objective isn’t the lowest monthly payment – it’s minimizing total cost for how long you keep the vehicle.
Loans punish short ownership – most of the interest cost is front-loaded.
Leases punish long ownership – mileage limits and end-of-lease costs add up.
Selling price matters in both – It’s the biggest lever you can control.
Loan vs. lease: a quick decision guide
Pick the path that fits how you actually use a vehicle. You can explore both options below.
Loan: Best if you’ll keep it 5+ years or want flexibility.
Lease: Best if you tend to switch cars every 2-3 years.
Loan: Better if mileage is high or uncertain.
Lease: Better if mileage is lower and predictable.
Loan: Higher down payment can reduce cost, but isn’t always required.
Lease: Large down payments don’t help – minimize up-front cash.
Loan: You can sell anytime, but market value may vary.
Lease: Early exit is usually expensive; easiest exit is at lease maturity.
Evaluating a loan
A good loan isn’t just about the rate – it’s abut how interest, term length, and selling price interact.
The main lever you control. Lower price reduces your loan balnace and the interest you pay.
Longer terms lower payments but raise total interest. Shorter terms usually cost less overall.
Small APR differences often matter less than price and term. Compare the whole deal.
Loan guardrails
Don’t stretch the term just to hit a monthly payment.
Avoid add-ons being rolled into the loan unless you truly want them.
Ask whether the rate shown is the lender’s buy rate or marked up.
Compare loan offers from multiple lenders
View offers provided by our financing partner and compare them against the guidance above.
Want to understand coverage before choosing financing?
Evaluating a lease
Lease payments depend heavily on manufacturer programs – but you can evaluate a quote using the inputs that matter.
The vehicle discount is your biggest lever. Ensure the discount is applied before any incentives.
Aim for the buy rate money factor and ask for the acquisition fee and any dealer add-ons.
Confirm term, mileage, and residual percent. These define the value you’re paying to use.
Lease guardrails
Don’t focus on the monthly payment – insist on the full quote inputs (price, MF, residual, fees).
Minimize the drive-off cash; large down payments rarely improve the deal meaningfully.
Ask for the lease quote in writing with all line items included.
Lease execution tools coming soon
Lease availability and terms vary significantly by brand and market. We’re building tools to support leasing in a future update.
Want to understand coverage before choosing financing?