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FINANCING OPTIONS TUTORIAL

Finance contract terms typically range from two to six years - 24 to 72 monthly payments.

Did You Know?

Generally, the longer you take to pay, the lower your payments will be - but your total cost to finance goes up.

Example:

Same Priced Vehicle and APR, No Down Payment, Different Terms

APR	Length of Contract	Monthly Payment	Total Finance Charge	Total Cost of Payments
10%	24 months	$923	$2,149	$22,152
10%	36 months	$645	$3,220	$23,220
10%	48 months	$507	$4,336	$24,336
10%	60 months	$425	$5,500	$25,500
10%	72 months	$371	$6,684	$26,712

For purposes of this example, no taxes, title or registration fees have been included. Those amounts will be extra.

Exercise - Financing Example

Answer the following questions pertaining to the chart above.

What is the total amount you would save if you chose the 36 month contract over the 60 -month contract?
$

What is the difference in monthly payment between 48 months and 60 months?
$



Jump to:
1.	Introduction	10.	Length of Financing
2.	Your Financing Options	11.	Leasing Through the Dealership
3.	What You Need to Know About Options	12.	How Mileage Affects a Lease
4.	Financing and Leasing Glossary	13.	Wear, Tear, and Maintenance
5.	Understanding Finance Terms	14.	When a Lease Expires
6.	Understanding Lease Terms	15.	Buy vs. Lease - How to Choose
7.	Payment Options	16.	Buy vs. Lease - An Exercise
8.	At the Dealership	17.	How Lease Payments Differ
9.	Financing Through the Dealership	18.	Exercise Your Options - A Quiz

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Length of Financing