Exploring Financing Options for Service Near Columbus

Financing Options for Service at Coughlin Toyota

In general, your financing options for a new or used vehicle will be an auto loan or a car lease. If you’re tight on cash and prefer to trade your vehicle for a newer model, then leasing might be ideal for you. When you lease a car, you usually have a low monthly payment. The trade-off is that you may have to comply with yearly mileage limits and you may have end-of-lease fees for wear and tear. 

Buying a vehicle, on the other hand, is a long-term plan for drivers who want to eventually own the vehicle. When you buy a car, you will typically need to have a downpayment, such as 10 to 20% of the vehicle’s value. Your monthly auto loan payments may be marginally higher with this financing option, but you will also have more freedom in how many miles you can drive and any customizations you may want to make. 

Can You Buy a Car Even If You Lease?

If you start off leasing your vehicle but decide you want to own your car in the future, you can discuss end-of-lease options with your dealership. End-of-lease payments can include extending your lease or buying out your lease by paying the residual value of the vehicle.

Can You Get Car Financing Even With Poor Credit?

When you get vehicle financing through your dealership, a history of bad credit isn’t an obstacle. While banks and credit unions may turn down your finance application because of a low credit rating, your local dealership is willing to work with you to find a competitive loan for your unique credit situation. That said, you can expect your interest rate to be higher if you have poor credit.

If you want to reduce your interest rate even if you have a poor credit history, there are several things you can do. Making credit card payments on time, relying on cash more than your credit cards, and cleaning up your credit report by challenging errors or closing down old accounts you don’t use anymore are all ways you can improve your credit score. It may take a few months for your credit score to reflect these changes. 

Whether you buy or lease your vehicle, your local dealership has plenty of flexible options for you to explore. Get in touch with Coughlin Toyota in Heath, OH to talk to a finance advisor today. 

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