Applying for financing or leasing doesn't need to be complicated. In fact, with a good credit history and a simple understanding of financing terms and procedures, it can actually be a relatively easy experience.

Here are a few suggestions and details to help you when applying for credit.

Improve Your Standing

Establishing good credit is one of the most important steps toward purchasing a car. A solid credit history can broaden your financing options and increase the amount of money that lenders are willing to lend you.

Nissan dealers can usually offer finance. But, bear in mind, even a few bad marks on your credit record may lead to higher interest rates and ultimately cost you more money in the long run.

Months before you buy, cancel extra credit cards, pay off debt, and maintain steady employment. Get a copy of your credit report at least 60 days in advance, so you will know if any errors need to be cleared up.

Down Payment

The bigger your initial down payment, the less you will have to finance. With a lower amount to finance your total interest charges will also be less. No one knows your personal situation as well as you do so consider how much you can afford to pay each month and plan accordingly. Also, do not forget to figure in taxes and other expenses when doing your planning.

Annual Percentage Rate (APR)

The APR, or amount of interest you can expect to pay annually, varies from creditor to creditor. When buying a vehicle you can usually take out a loan from banks or credit unions, or apply for financing through other financial institutions. Your Nissan Dealer can also help you with the financing process.

Shop around for the best APR, but be aware that lower APRs sometimes come at the expense of other factors such as the number of months you will be making payments (see below).

We recommend you check with your Nissan Dealer to see what financing options are available.

Length of Term

Finance contracts and leases generally range from one to five years. Longer-term contracts typically have a higher APR than short-term ones, but usually offer lower monthly payments.

Trade-Ins

While you could sell your car on your own, trading it in offers several advantages:

• You can get immediate cash or credit.
• The dealer handles the paperwork and might pay off your current loan/lease.
• You won't have to deal with running ads, strangers in your home and car, bad cheques, or liability for mechanical problems.

Bring These to the Dealership

Come prepared with these documents, as some or all of these may be needed:

• Proof of Employment and Salary (your last pay stub)
• Driver's Licence
• Bank Account Numbers
• A down payment cheque
• Your Auto Insurance Policy Number
• Title/Loan/Lease Papers and Owners Manual for your trade-in

Before getting yourself involved in any credit please make sure you can afford to make all the associated payments (including both installment and final payments), taking into account any fluctuations in interest rates. If you are in any doubt please consult a financial advisor.