Automobile financing refers to 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. Typically, buyers make a down payment and then repay the borrowed amount in monthly installments over a set period, often with interest. Many people choose to finance their vehicles to spread the cost over time, making it more affordable. It's important to consider factors like interest rates, loan terms, and total costs when selecting a financing option. Understanding these elements can help buyers make informed decisions about their automobile purchases.