Everything You Need to Know About Vehicle Financing
How to Get a Car Loan or Dealership Financing in Kansas City
When it’s time to buy a new or used car, most people dread the financing process while looking forward to owning and driving a new or new-to-them vehicle with all the key features and capabilities they need.
When it comes to vehicle financing, you have quite a few options available to you. The one you choose is completely up to you and how you prefer to pay off or pay toward your vehicle. Let’s explore the car loan and leasing options available to customers of Zeck Ford in Leavenworth, Kansas, just a short drive from the Kansas City metro area.
How to Lease a Car
People who choose to lease a vehicle are essentially renting it for a specific time period. Lessees make monthly payments for the duration of their lease.
Leases, like purchases, require a down payment, along with the aforementioned monthly payments, which cover the vehicle’s depreciation over the term of the lease. This money never goes toward purchasing or ownership of the vehicle. Think of it like renting an apartment!
When you decide to lease a vehicle, you sign a lease contract, which sets forth rules you must follow while the vehicle is in your possession. For example, your lease contract will dictate how many miles you can put on the vehicle, the condition you’re required to return the vehicle in, and the start and end dates of your lease.
When your lease period is up, you’ll return the vehicle to the dealership, where you can purchase it, or sign another lease or purchase a different vehicle. Unless you decide to buy the vehicle you leased, the dealership maintains ownership of it and will resell it as a used vehicle.
So how much should you expect to pay toward a vehicle lease? In short, it depends on the vehicle you’re interested in leasing. The amount of money you’ll pay each month is determined by calculating the depreciation of the vehicle over the term of your lease. Basically, you end up paying the difference in value between a brand-new version of the vehicle you’re leasing and how much it will be worth when you return it to the dealership at the end of your lease term.
One way the dealership calculates the depreciation amount is based on the mileage your lease allows you to drive during your lease term. If you drive more than your lease allows, you’re responsible for paying the difference in vehicle depreciation. This usually costs between 10 cents and 25 cents per mile, on average. Always refer to your lease for information.
New Car Financing Through a Lease
Leasing a vehicle could be a great idea for you if you do all your driving locally in Kansas City, and you’re driving less than 15,000 miles per year. Leasing guarantees you always drive a new vehicle, as it’s a rarity for someone to ask to lease a used car.
And when it’s time to upgrade your car, you never have to bother with finding a buyer or trading in to the dealership. Just return your leased vehicle, and sign a contract for a new one.
However, if you find that you drive a lot, leasing is not for you. And if you are someone who likes to customize and modify their cars, you won’t be able to do that while you’re under a lease.
New Car Loans in Kansas City
If owning a vehicle is more your style, then you’ll probably need to take out an auto loan to purchase a vehicle, unless you have stacks of cash stashed away somewhere!
When you take out an auto loan, all the money you pay toward your monthly payments and down payment applies to the principal and interest on your loan. This money adds up to cover the total purchase price of the vehicle, and sometimes includes taxes and fees. Once you’re done with your monthly payments, you fully own the vehicle and will receive the title in your name from your lender.
You do not need to seek out a car loan on your own. Instead, you can apply for dealership financing when you visit Zeck Ford in Leavenworth. If you have a decent credit score, you can qualify for a car loan while you’re here. Our financial adviser will process your loan application and find a loan with the best terms and lowest interest rate. Of course, you’ll still need a down payment of some kind: cash, check, debit card, credit card, or a trade-in.
All About Monthly Car Payments
The amount of money you’ll pay each month for your car payment is determined by the cost of the vehicle, the amount of money you put down at purchase, and the interest rate you received from your car loan lender.
You can decrease your monthly payments by increasing your down payment and your loan terms, or by buying a less expensive vehicle.
Although these monthly payments over an extended period of time – usually 72 months – feel like a big commitment, you actually get lots of benefits from purchasing a vehicle. First, new vehicles have wonderful, free factory warranties that cover major mechanical issues for a period of several years and a set mileage. This means you’ll never pay out of pocket for repairs covered under your warranty.
You also get the benefit of driving a car in which you’re building equity. Once you own the car and your loan is paid off, you can do whatever you want with the remaining value of the vehicle, including trading it in toward a new vehicle. You also can drive limitless miles with no restrictions on modifications and aftermarket upgrades.
Used Car Financing
If you’re looking to purchase a used car, you’ll need an auto loan, just like you would if you were purchasing a new one.
There are a couple of differences between a new car loan and a used car loan, however. First, some used car loans can have higher interest rates than used cars. Second, unless you purchase an extended warranty and roll the price into your loan, your vehicle likely no longer has coverage from the factory warranty, so you’re responsible for paying your monthly payment and for any necessary repairs.
However, the initial purchase price of a used car is usually much less than a new one, which saves you money! Your used car also depreciates at a slower rate than a new one.
How Can I Value My Trade?
If you’re planning to trade in a vehicle to put toward your down payment, you’ll probably want to calculate roughly how much money you could expect to get from it at the dealership.
The fastest and easiest way to get this estimate is to use the Value My Trade tool on the Zeck Ford website. It will give you a range of amounts you might receive for your trade-in.
New and Used Car Financing Made Easy at Zeck Ford
Shop for your next ride or family car at Zeck Ford in Leavenworth, Kansas, just outside Kansas City, Missouri.
At Zeck Ford, you’ll find quality new and used vehicles at fair prices, without having to haggle with a high-pressure salesperson.