An alternative option to getting a car loan is a leasing agreement. Under a lease agreement, the expectation isn't that you'll buy the car you're leasing. Instead, you're 'borrowing' a car for a specific period, making regular lease payments as though you were renting the vehicle. Like any loan, your credit score is taken into account before you begin leasing.
Once you've reached the end of your lease agreement, you can either buy the car at a reduced price or give it back to the lender. After that, you can take out a new deal for a different vehicle and start the whole process again. Leaving your lease agreement might also result in an early termination charge to make up for any money lost.
Open-end and closed-end leases.
Check for these terms before signing on a car lease. Open and closed-end leases work a little like interest rates. Open-end is variable, which means the exact future value of the car isn't stated in your contract. So if your vehicle is worth more at the end of the lease, you may get a refund. Many vehicles, however, will depreciate in value over time.
Closed-end lease deals decide on the car's value upfront, so the cost doesn't change unless significant damage is sustained. Despite which type of lease you choose, make sure insurance is included in the deal to prevent any costly accidents down the road.