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Auto Financing Guides

Make smart decisions when buying or financing a vehicle. Our guides cover trade-in values, lease vs. buy comparisons, and auto loan rates.

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Understanding Auto Financing

Lease vs. Buy Decision

Leasing offers lower monthly payments and a new car every few years, while buying builds equity and has no mileage restrictions. Consider how long you keep vehicles, your annual mileage, and whether you want to customize your car.

Credit Score and Rates

Your credit score is the biggest factor in your auto loan rate. A score of 720+ typically qualifies for the best rates, while scores below 620 may face rates 10% or more above prime. Even a small rate difference adds up significantly over a 5-year loan.

Maximizing Trade-In Value

Get quotes from multiple sources before visiting the dealer. Clean and detail your car, fix minor issues, and separate the trade-in negotiation from the new car purchase. Knowing your car's market value puts you in a stronger negotiating position.

Total Cost of Ownership

The purchase price is just the beginning. Factor in insurance, fuel, maintenance, depreciation, and financing costs when budgeting for a vehicle. A less expensive car with lower total ownership costs may be a better financial decision than a pricier model.

Frequently Asked Questions

Should I lease or buy my next car?

Buy if you drive more than 12,000-15,000 miles per year, plan to keep the car for 5+ years, or want no restrictions on customization. Lease if you prefer a new car every 2-3 years, want lower monthly payments, and drive under the mileage cap. Our lease vs buy guide breaks down the full comparison.

What auto loan rate can I get with my credit score?

As of 2026, average rates range from about 5-7% for excellent credit (720+) to 12-20% for poor credit (below 580). Improving your score by even 50 points before applying can save you thousands over the life of the loan.

How do I get the best trade-in value for my car?

Start by checking values on Kelley Blue Book and Edmunds. Get written offers from CarMax or online buyers before visiting a dealer. Clean and detail your vehicle, fix minor cosmetic issues, and negotiate the trade-in separately from the new car purchase to avoid dealer tactics.