Financing a Vehicle: Leases and Auto Loans

It’s no secret that car prices continue to rise. Fortunately, loans and leases make getting a new car affordable. Loans and leases have several benefits, but they also have limitations that car buyers should know. The friendly finance team at Wood Motor CDJR Carthage has been helping drivers near Joplin and Webb City with loans and leases, and we can help you, too.

Benefits of Auto Loans

Auto loans are popular choices for drivers who want to build equity. Auto loans have monthly payments determined by the sticker price of the car minus a down payment. As interest rates continue to drop, many auto loans have affordable rates determined by the loan term and your credit score. It’s possible to get auto loans for as short as 36 or 48 months or as long as 72 or 84 months. Remember that longer-term loans often have higher interest rates, but nothing like the rates for credit cards.

Unlike leases, auto loans do not have limits on mileage or wear and tear. At the end of the loan, you own your vehicle. You can trade in or sell your car during the life of the loan, but you will be responsible for the remaining loan amount - even if it is more than the value of your car.

Why Lease a New Car, Truck, or SUV

Some drivers prefer to lease new cars, especially if they like to have a new car every few years. Car leases are determined by residual values - the value of the car at the end of the lease term. All leases have annual percentage rates (APR), but you won’t pay as much interest as you would for an auto loan because lease terms are short.

At the close of the lease, you’ll have choices. You can return the car and lease or buy a new one. Some drivers decide to buy their leased car, financing it as they would a used car. When you lease a car, it’s important to stay within the mileage limits and follow maintenance recommendations to avoid fees at the end of the term. The Wood Motor CDJR Carthage website has our latest lease and loan deals offered through Stellantis dealership financing.

Explore Finance Options at Wood CDJR Carthage in Carthage, MO

Regardless of the financing you choose, the team at Wood CDJR Carthage will share the complete details about the financing terms, fees, and total costs. We are dedicated to making buying a car convenient and stress-free. We have an online finance application and a trade valuing tool to speed up the car buying process and make applying for financing quick and easy.

If you have questions about financing a car, contact us over the phone, through our chat service, or in person at our dealership in Carthage, Missouri.