Automobile financing is a way for individuals to purchase a car without paying the full price upfront. Instead, buyers can take out a loan or lease, allowing them to make smaller monthly payments over time. This makes owning a vehicle more accessible for many people. When financing a car, buyers typically work with banks, credit unions, or dealerships to secure a loan. The terms of the financing, including interest rates and repayment periods, can vary based on factors like credit score and the type of vehicle. Understanding these terms is essential for making informed financial decisions.