Automotive finance

Automotive finance refers to the methods and processes that consumers and businesses use to purchase vehicles. This includes loans, leases, and financing options provided by banks, credit unions, or dealerships. A loan enables buyers to borrow money for the car and repay it in installments, while leasing involves paying for the use of a vehicle over a set period without ownership. Automotive finance also encompasses interest rates, credit scores, and payment terms, all of which influence the affordability and overall cost of owning a vehicle. Understanding these elements is essential for making informed purchasing decisions.