Car Loan Frequently Asked Questions (FAQ)
We know purchasing a vehicle is a big decision, which is why at Destination Mazda Vancouver we strive to help educate our guests and guide them through the vehicle purchase process. One of the most significant pieces of that being their financing options! With that, we've created this helpful guide of common questions we often hear as it relates to financing options, car loans, and car leases.
What is car financing?
If you are looking to purchase a vehicle, but are unable or do not wish to pay in cash, car financing is a great option to getting you behind the wheel of your new vehicle. In fact, most vehicle purchases involve some element of car financing - be that a car loan or lease agreement. This involves borrowing the sum of money required to purchase the vehicle to then pay it back over time, with interest, to whom it was borrowed from (most often a bank, financial institution, or car dealership).
What is a car loan?
A car loan is a sum of money you borrow from a bank, credit union, car dealership or other lender to fund the purchase of a vehicle. The loan balance plus interest and/or any other fees is then paid back over time by making regular payments to your lender.
What is the difference between leasing and financing a car?
While similar, there are some notable differences between financing and leasing a vehicle.
A car loan allows you to purchase a vehicle with the eventuality of owning that vehicle outright over time. As you pay down your loan you build equity in the vehicle and, once paid off, you own the vehicle outright without any additional payments for as long as you'd like.
A car lease is more similar to renting a vehicle for a prolonged period of time. Leases are often for 1-3 year terms. During that time, you make monthly payments and are responsible for maintenance. These monthly payments may be lower than financing a vehicle, but you also often have to adhere to usage limits including mileage allowances. At the end of the term you return the vehicle to the dealership or may be able to make a lump-sum payment to purchase the vehicle outright.
How do I get a car loan?
Your best option to get a car loan is right here at Destination Mazda Vancouver! Our team of experienced finance experts work with lenders to find the best rates available for all of our customers.
Can I get out of a car loan?
The short answer is YES! There are a variety of ways our finance team at Destination Mazda can help you get out of a car loan. Most commonly, we can help you review refinancing options on your current vehicle, look at options to move you into a different vehicle, or purchase your vehicle from you!
