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So you’ve decided it’s time to invest in a new or a used car, you have plenty of things to consider. In addition to deciding the manufacturer, and the type of car you are going to buy, you’ll need to make some decisions about how you are going to pay for the car.

While it would nice to pay cash, for most that’s not an option. Rather, most of us will be looking at the various car finance options. In fact, let’s take a minute to consider what those options are. Leasing has become more popular in recent years thanks to improved regulations, which have left consumers feeling more confident that leasing is honest and above board. With a lease you will need to put only the first and last month’s lease payment down.

That’s significantly less than if you were purchasing a vehicle. Of course, you can put more down if you like, and that in turn will reduce your lease payment. Leasing also offers a much smaller payment than when you purchase a vehicle. That’s because you have a balloon payment when the lease term is up. Most times you can lease a lot more vehicle than you could afford to buy, because of the smaller payments.

Your second option is to buy the vehicle using financing. When you finance a vehicle you will need to decide who you would like to finance with. You can use your own bank, the dealerships financing plan, or any other lending institute. It pays to shop around for the best interest rates. The better your credit score the better the interest rate you’ll be offered. You will have some flexibility with the length of term.

New vehicles can be financed the longest, while the term for used vehicles will be based on the actual value of the vehicle. Take the time to shop around for the best financing options for you.