ABA Family Legal Guide

Automobiles

Buying, Renting, and Leasing a Car

Buying a New Car

What if I do not have enough cash to buy my new car, even after my trade-in?

Then you need financing. Banks, credit unions, loan companies, and car dealers are all potential funding sources. Interest rates will vary among these options. Shop around for the best deal by comparing the various loan terms and annual percentage rates (APRs). The APR determines the actual interest you will have to pay on the unpaid balance of the loan, and may depend partially on your credit history. For more information on comparing terms and APRs, see chapter 7, "Consumer Credit."