Buying and Financing a Car

Very few people have enough cash to be able to purchase a car without obtaining a loan to help pay the price of buying a car. Fortunately, there are several options available for financing the purchase of a vehicle. Knowing which source and method is best for you can save you a lot of time, money and trouble. Basically there are two types of vehicle financing. One is known as a "direct financing" and the other is "dealer financing".

Direct financing is when you borrow money directly from a bank, credit union, or finance company to pay for the purchase of the car.

Dealer financing is when you agree with the automobile dealer to pay the amount financed (cost of the car less your down payment) to the dealer in installment payments. The dealer financing agreement is also called a retail installment sales contract. Often the dealer will promptly sell the sales contract to a lender. For more information, please download and review the "Understanding Vehicle Financing" brochure.


If you would like to learn more about the process of obtaining a personal loan from Citizens, or if you would like to learn more about other types of loans we provide, we encourage you to contact us today or stop by any of our convenient locations. You can also get the process of applying for a loan started now, simply fill out our online application form and a friendly Citizens representative will contact you!