1. Closing the Sale
Sales contract – agreement to purchase a vehicle that states the offering price and all conditions of the offer; legal binding contract that is signed by the buyer and seller
May be required to include a deposit to show you are making an offer in good faith
Determine financing if you’re not paying cash
Prior to delivery the dealer is responsible for cleaning the vehicle and installing any optional equipment

2. Trade in Your Loan Refinancing an existing vehicle loan:
Do you have enough equity in your car to serve as collateral?
Credit unions or online banks may prefer to provide used car loans
Homeowners may be able to use an equity line of credit to pay off an auto loan

3. Leasing a Vehicle
When leasing a car, you are paying for its use during a specified period of time
At the end of the time, you have nothing
Leasing usually offers:
Lower monthly payments
More expensive car for same payments
Lower down payment

4. The Leasing Process Closed-end lease
When the lease is over, you “walk away” from the car
Most customers choose this type
Open-end lease
The car’s residual value is used to determine the payment
If you return the car and it is worth less than estimated, you pay the difference

5. Lease Payment Calculation Variables
1. Capitalized cost (price) of the car
2. Estimated residual value at end of lease
3. Money factor (financing rate) on lease
4. Term or length of lease (typically 2 to 5 years)

6. Lease verses Purchase Analysis
More or less costly to lease?
When the lease ends
Return the car?
Buy the car?