Bob Moore Subaru of Hurst

Before you begin the car-buying process, Bob Moore Subaru of Hurst, highly recommend spending some time so you full understand your finance options. The National Automobile Dealers Association, N.A.D.A., helps you evaluate your financial situation before financing or leasing a new or pre-owned vehicle.

As you consider your purchase, here are some terms you might encounter when discussing finance packages with your Bob Moore Business Manager:

Leasing

A lease can be a good way to have a more affordable payment than when buying a car. Your lease payment covers only the vehicle depreciated value, plus the lessor's monthly finance charges, not the entire purchase value. Most vehicles are leased for 24 to 48 months, and then returned to the lease company. If the lease has equity at the end, the lessee would retain the equity if the vehicle is used as a traded in or sold to an individual. We don't recommend leasing a vehicle for longer than its general warranty. For people who drive an average number of miles and take good care of their vehicles, leasing is a good financing alternative

Indirect Financing

Indirect financing is a common type of automotive vehicle financing in which the actual lender may not be known to the borrower. For example, most automobile purchase loans are not financed by the car dealers where the car buyers fill out and submit the loan applications, but by a third party. This party, usually a bank, finance company or credit union, called the loan owner, is the one that approves the loan terms, receives the loan payments installments from the car buyers. In this arrangement, a buyer and a dealership enter into a contract where the buyer agrees to pay the amount financed, plus an agreed-upon finance charge, over a period of time. The dealership assignees the loan to a bank, finance company or credit union, which services the account and collects the payments over the agreed-upon period of time. For the vehicle buyer, dealership finance offers:

For the vehicle buyer, dealership financing offers:

• Convenience - Dealers offer buyers vehicles and financing in one place.
• Multiple financing relationships - The dealership's relationships with a variety of banks and finance companies mean it can usually offer buyers a range of financing options.
• Special programs - From time to time, dealerships may offer manufacturer sponsored low-rate programs to buyers.

Direct Financing

Direct Financing is a loan by a bank or credit union to its own customer without the use of third parties, such as dealers. Direct lending gives the lender more opportunities to screen credit applicants than indirect lending, and to monitor the loan through the Credit Department once a loan is approved and funds are disbursed. Bob Moore Subaru of Hurst works with most banks and credit unions to make the direct financing process available.