When you're trying to lease or purchase a vehicle from a dealership, there's nothing more frustrating than being presented with vague financial terms that you're not familiar with. Things like APR, co-signers and credit scores can play into your ability to purchase a vehicle -- let's talk about how.
When buying a vehicle, the best thing you can do is pay in cash. If that's not an option, you'll likely be paying with credit. In order to qualify for an auto loan, your dealership will likely run your credit score to see if you've proven yourself to be a financially responsible individual. Your score is also used to calculate APR.
The higher your credit score, the lower the APR will likely be. The higher the APR, the more interest you'll pay on a loan. If your score is too low, then you might need a co-signer on your loan. This is someone you know with a good credit score who will back you on your loan.
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