Auto financing is the process of obtaining funds to purchase a vehicle. This can be done through various methods, including loans from banks, credit unions, or dealership financing. The borrower typically agrees to repay the loan amount, plus interest, over a set period, usually through monthly payments. When considering auto financing, it's important to understand the terms, such as the interest rate and loan duration. Additionally, factors like credit score and down payment can influence the financing options available. Many people use auto loans to make car ownership more affordable and manageable.