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Affordability

Your choices when pricing a vehicle.

Remember you have choices when it comes to how much you finance. Before you make your purchase, it's always a good idea to understand the following:

• The right time to buy
• Low Annual Percentage Rate (APR) and incentives
• How to calculate incentives
• How down payments work
• How additional fees affect payments

The best time to purchase a vehicle

Is it model year clearance time? After the new year? On your birthday? Actually, the best time to purchase a new vehicle is simple: Before you need it.

So, don't be caught without all the facts when you need a vehicle. Make sure you do your research and know all your options.

Researching available financing incentives

Find out if there are any special financing rates on the vehicle, or if there are any lease incentives currently in place. Once you find out about any available incentives, you can choose between the following options:

• Special low APR financing
• Cash rebates
• Or sometimes combination of both

Choosing between a low APR and a cash rebate

Should you go with a low APR? Is the rebate better for you? Or, should you consider a low APR combined with a cash rebate offer? The simple answer: It depends.

Try calculating your payment using both forms of incentives. That way, you can make a decision that's right for you-and your budget. And, if you're still not certain whether you want to finance or lease, try comparing the combined offers and incentives on each.

More about low APR: Down payments

Keep in mind that special low financing rates may require a down payment. If your particular dealer or manufacturer incentive does, you'll probably want to have your payment figured a few different ways:

• The cash down payment and special low finance rate.
• The cash down payment plus rebate.
• The rebate as your down payment.

Here are some additional things to know about down payments:

• The more you put down, the less your monthly payment. Once you determine what you can afford monthly, you'll know how much you have to put down to get to that figure.
• Putting nothing down comes with a price. But it's spread out over time.
• Putting a lot down lowers your monthly payment. But you have to come up with the cash up front.

Calculating additional fees.

Keep in mind that you're responsible for the tax, title, license, dealer and registration fees on your new or used vehicle. You can either pay in cash at delivery or have the fees included in your finance contract or lease agreement. Remember though, if you choose to roll them into your agreement, your monthly payment will increase.