Car loans have changed significantly over the years. Today’s butting car buyer has more options than ever. Banks, credit unions and car companies are competing for your business and allowing extremely flexible terms. Car loans have terms ranging from 1 year to 6 years. Payments can be made monthly, weekly or bi-weekly. A strong credit score isn’t necessary to buy a car but good credit can save you a significant amount of interest and fees. New cars have the most options for and the best interest rates for those with the best credit. Many car companies have looked to enticing financing to lure buyers in as their margins have steadily dwindled. Volume sales lead to 0% interest on many models and depending on the car your want and where your credit score falls, financing thru the dealership might be your best bet. Car loans for used vehicles is where you find the greatest variance. Depending on the age and type of car you wish to finance your rate can change significantly. The newer the car the better your options. Lenders find less risk in giving auto loans on newer vehicles with less miles than on those that have high mileage and several years of use. Leasing a car has become more mainstream for the common buyer than every. Car companies entice buyers with 0 down at lease signing and low monthly payments to entice you to sign on the dotted line. Beware the devil can be in the details when leasing. Mileage overage charges and fees can drive up the cost of leasing and leave you with a big bill when the lease is up. One facet of car buying that has grown in recent memory is the buy-here-pay-here dealerships that have become more and more common. These types of dealers finance the car in house and put the risk of default on their own books. They often times don’t require any sort of credit history and in return they tend to charge much higher interest rates and fees. The second negative part to these types of car loans is that many of these dealerships don’t report to credit bureaus therefore these car loans don’t help build our credit.