You have a choice to make.

When you’re ready for your next vehicle you can take the traditional road to purchase – and finance – as millions of people do every year.

Or you can lease, which accounts for about 20% of new-vehicle transactions in recent years.

There are advantages to each option which you should know about before you make a decision, because either way you are making a significant financial commitment. That might be perhaps two, three or four years in the case of a lease or around six years on average for a purchase.

To help you understand the differences between purchasing a new vehicle and leasing, we’ve produced a short video that should provide some useful information. “Buying vs. Leasing a Vehicle” appears above and in the Learning Center with other useful auto finance information, helpful videos and more.

VIDEO TRANSCRIPT

Buying vs. Leasing a Vehicle

Life is full of big decisions, including getting a new vehicle. But it’s difficult to get through life without one.

A question you will have to answer is whether you should purchase a new vehicle or lease it.

There are good reasons to consider both.

Purchasing a vehicle, whether or not you finance it, enables you to treat it as your own, even if you choose to sell it.

And there are other advantages that make this worth considering.

Financing a purchase may be easier than leasing for people with lower credit scores.

You also may get more value from purchasing a vehicle if you plan to keep it after it is paid off.

• No mileage limits
• No wear-and-tear restrictions
• No customization restrictions

And then there is the feeling of accomplishment that goes with paying off a vehicle and not having a car payment.

Or you may find leasing a vehicle a better alternative.

Leasing may allow you to drive a more desirable vehicle for the same monthly payment – and low or no down payment.

Leasing also allows you to change vehicles more frequently if you choose not to purchase, so you can drive a newer vehicle.

Driving a leased vehicle may involve less worry, since leased vehicles have manufacturers’ warranties included, which may result in minimal repair bills.

When your lease contract ends, you will have multiple options …

• Purchase the current leased vehicle
• Turn in the lease vehicle and lease again
• Return the leased vehicle and purchase another vehicle

And with leasing, you never worry about owing more than the vehicle is worth.

Whether you’re purchasing or leasing, Â鶹ֱ˛Ą Consumer USA has answers … and is ready to help with your next vehicle.

For more videos and smart financial tips, visit our Learning Center at santanderconsumerusa.com.

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You’ve made your final vehicle payment – congratulations! That is an exciting step as a vehicle owner, and one you should be proud of.

How do I get my title after paying off my car?

Now, you may be wondering when you’ll receive your car title. Great question! Let’s take a look at the journey your title is about to take on its way to you.

Ensure your information is updated

Have you moved or otherwise updated your mailing address since you purchased your vehicle? If so, did you update your address with both your lender and your state vehicle titling agency (Department/Bureau of Motor Vehicles [DMV/BMV], title and registration office, etc.)?

Now may be a good time to double-check that your mailing address is correct with both your lender and your state titling agency. Why both? Because there are many types of titles and not all are mailed directly from your lender.

Where your title, or lien release document, is mailed from depends upon the state in which your vehicle is titled and the type of title that was issued at the time you purchased your vehicle. Some titles are sent to you directly from your state’s auto titling agency (more about that a bit later), so it’s important to keep them up to date with your current mailing address as well. Other states, such as Ohio and Florida, do not automatically mail the title. You have to request the title online at the DMV and pay for it to be shipped lien free.

Title release dates vary per state requirements

Depending on how you made your final payment, it may take a few days for it to post to your account, especially if you mailed your final payment. Don’t forget to allow time for the check to reach your lender and get posted to your account.

Once your account reaches a zero balance, your title will be set for release. Please note – the account must reach a zero balance for the title release to be processed. If there is an amount due of any kind, it won’t prompt the title release process to begin.

The date your title is set for release depends on guidelines set by the state in which your vehicle is titled. Keep in mind that this may NOT be the state in which you reside, but rather the state in which you originally purchased your vehicle.

For example, if you currently live in Texas, but you lived in California when you purchased your vehicle, you likely still have a California title. The title will be released per California guidelines. Many consumers change their titling state soon after they move since registration expires and they cannot drive in their new state.

Something else to keep in mind is that unsecured forms of payment, such as personal checks, may have additional hold times before a title is set for release. This allows for funds to clear prior to the lien being removed from the title. Again, this follows guidelines set forth by the state in which your vehicle is titled.

When financing a vehicle, who holds the title?

Something else that varies by state is who holds the title while financing a car. In title-holding states, the driver holds the title while paying off a loan.

Keep in mind that even though you may reside in a title-holding state, the lienholder’s name still appears as the legal owner on the title.

On the flip side, in non-title holding states, those particular states require the lienholder to hold the title until the loan is fully paid off.

What to expect when your title is processed

When you receive your original title from your lender, it will have the lien signed off in the appropriate area. In states where the vehicle owner holds the title, you will receive a lien release. Simply attach the lien release to the title you currently have in your possession. And, for Maryland residents, where there is a two-part title, you will receive the lender’s portion of your title, with the lien released in the appropriate area.

It is strongly recommended that, upon receipt, you take the original title document(s) to your local state’s auto titling office to have a new title issued in your name with no lienholder. If you do not do so and later misplace the original title and/or lien release, you will need to contact your original lender for assistance in getting a new title. You will have to do so before you can sell or trade your vehicle.

Earlier we mentioned that some states will mail your title to you directly from their vehicle titling agency. In these states, lenders hold an electronic lien and do not have a paper record. When a loan is paid in full, the lender notifies the state agency that they no longer have an interest in the vehicle. At that time, the state removes the lender from the title record.

Some states that process electronic liens print a paper record at this time and mail it to the vehicle owner’s address on record. (In general, allow up to three weeks for processing and mailing from the state agency.) Other states keep the title as an electronic record until a paper record is requested. If your state processes electronic liens and you have not yet received your title, contact your state’s auto-titling agency to see if this is the case.

Keep your title in a secure place

Finally, once your title arrives, be sure to keep it in a safe place. Ideally, a fireproof safe or cabinet, where you keep other important documents is best. If you don’t have access to a fireproof safe or cabinet, keep it in a secure, accessible area. Do not keep your title in your vehicle.

You will need it when you decide to sell or trade your vehicle. Knowing where it is and being able to access it when you need it will be important when the time comes.

For more information about this and other topics, including helpful articles regarding financial wellness, please visit our Learning Center.

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It’s that time of the year. Like millions of other Americans, you’re doing the hard work and preparing to file your taxes. Once your taxes are submitted comes the exciting part, possibly turning your refund into a new vehicle – for the road ahead.

The average tax refund last year was sizeable – around $3,000 according to the IRS. Whether your tax refund turns out to be more or less than you hoped, there are smart ways to put the money to good use when it comes to your car and auto-related expenses.

Pay down your current car loan

Depending on the amount of your tax refund and how much you owe on your current vehicle, you may be able to pay your loan down by a decent amount, or even pay it off entirely. The freedom of cruising around in a car you own outright is definitely fun!

Down payment

Is getting into a new vehicle part of your 2025 plans? Consider a larger down payment, which typically means you’ll need to finance less and could end up with smaller monthly payments.

For example, think about a down payment of $3,000 on a $40,000 vehicle. Using our handy monthly payment finance calculator, if you finance for 60 months at 10% interest, your monthly payment would be about $786. But if you are able to double your down payment to $6,000, your monthly payment drops to just over $722 a month. That’s a savings of $64 a month and more than $768 a year!**

Tips for when you use your tax refund to buy a car

Additionally, if you are going to get a new car using your tax refund, a few tips to think about include:

• Knowing your budget. Even though a refund can boost your income when it arrives, it can be spent quickly in a short amount of time. Make sure to consider your current budget to use the extra cash wisely.
• Consider buying a used car. By opening up your ideas of what your next vehicle could be, a pre-owned car could wind up saving you quite a bit of money and make your refund go further regarding auto financing.
• Taking your time during the process. It’s always a good idea to weigh options with a vehicle purchase and not rush into something that might be out of budget, or wind up being not the deal you thought it was.

Pay ahead on your current account

Based on your current car loan balance and tax refund amount, you could easily have several months of payments in hand after getting your tax refund. Keep this money saved in a secure bank account so you’ll have the funds available when the loan payment is due.

You could even make additional payments. Although you will still be paying any accrued interest, you can pay off your loan quicker with these additional payments. For convenience, Â鶹ֱ˛Ą Consumer USA customers can set up Auto Pay so deductions are automatically made by the payment due date.

Get your account back on track

If you’ve struggled to keep your account paid in full every month, your tax refund could help get you back on track. Popular payment options include the above-mentioned Auto Pay, online and by phone or mail. (Fees apply to debit card payments made by the automated phone system or with a live agent.)

Upgrade your insurance coverage

Auto insurance is one of the expensive, but necessary aspects to car ownership. Rates can vary depending on a number of factors including location, driving record and vehicle type. Taking a look at your insurance coverage this time of year, resources such as Insurify*** can help you decide ways to save and allocate funds from your tax refund toward insurance costs for the year.

Fix or upgrade your car

Trading in or buying a vehicle right now may not make sense for you. Instead, maybe the time is right to get the brake job you’ve been putting off or install a new set of tires.

Invest in yourself

If you’re in good shape with your auto loan, insurance, vehicle maintenance, etc., then maybe it’s time to fill the fuel tank and head out of town for a relaxing road trip. Whether you go on a weekend jaunt or something longer, put stress in the rearview mirror and decompress.

Road trips are an excellent way to get creative on a budget. Or treat yourself and indulge in a luxurious hotel and fancy restaurant and return feeling refreshed.

*These statements are informational only and should not be construed as legal, financial, tax or other professional advice. Please consult a tax professional for any tax-related questions.

**The referenced calculator and example provided are meant for educational and illustrative purposes only. The calculator estimates monthly payments solely based on the information you provide. We do not guarantee the availability of the illustrated terms or your eligibility for any product referenced. The estimated monthly payments generated from the calculator do not constitute a finance offer.

***Insurance products and services described are offered by Insurify Insurance Agency, Inc., not Â鶹ֱ˛Ą. or its affiliates. Insurify will help you to arrange your insurance needs with selected insurance carriers. Customers of Â鶹ֱ˛Ą. are not required to purchase an insurance policy through Insurify or any specific insurance company in connection with their auto loan or lease, and your choice of agent or insurer shall not affect any credit decision or credit terms except as related to the credit worthiness of the insurer and the scope of coverage. Insurify may compensate Â鶹ֱ˛Ą Insurance Agency US LLC if you sign up for insurance through Insurify. Insurify Insurance Agency, Inc. is a licensed insurance agency in 50 states and DC.

The post How to use your tax refund* to buy a car appeared first on Â鶹ֱ˛Ą Consumer USA.

There are some clear reasons why it makes sense to pay bills on time. Depending on the situation, keeping up with payments can help to avoid potential late fees, added interest charges, a knock to your credit score, the loss of a service or possession or even a combination of these.

Thankfully, there are also some straightforward ways to stay on track. Take a look at these tips.

1. Make a list of your bills

A good place to start is to make a record of all the bills you need to pay, including the name of service providers or people to pay, the amounts and when they’re due, so that you don’t miss a payment. Many bills, like a mortgage, rent or car payment, are recurring fixed amounts which are easy to plan for while others can vary. The Consumer Financial Protection Bureau recommends displaying this information in a bill calendar as a handy reference.

2. Review your payment due dates

Remember that you’ll need enough money in your bank or other chosen account to pay each bill. With that in mind, you may want to adjust your payment due dates, where possible, with your service providers. Often, companies will enable you to log in to an to make an update.

3. Think about how you pay

Look into the payment options offered by each service provider, too, to make sure you’re making the right choice for your situation. Some common ways to pay include debit cards, ACH, online and mobile payments, checks, money orders and cash.

Be aware that you may have to pay a fee according to the payment method you choose and who you’re paying, and that the time it takes for a payment to process is typically different across payment methods. Make sure you know which options are free, which require a fee, and plan for processing time as part of your research.

If you have a recurring bill, consider setting up automatic payments to ensure you are on time, every time. For a credit card or other types of account that involve repaying a debt, it could also help you build a record of reliable payments which can benefit your credit score. Another approach is to set up payment reminders via text or email.

4. Make time to pay

Once you’ve got a clearer picture of the best way to pay each of your bills, you’ll still need to set aside time to make payments that aren’t paid automatically. One option here is to commit to a regular time to submit those payments. It’s also an opportunity to review your statements, check for errors and make sure you recognize all of the charges.

Managing your vehicle payments

Getting a vehicle finance contract with Â鶹ֱ˛Ą Consumer USA sets you up for a convenient route to managing your account and payments. You can sign up or log in to your account at to enjoy access anytime, anywhere.

Once logged in, MyAccount lets you easily select your preferred payment option, including free Auto Pay and ACH options, make and schedule your payments, opt in for electronic notifications and more. Take a moment to log in now to check your settings, and look out for new MyAccount features and updates in the future.

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Car budget calculators. These tools can be a helpful asset for digging into one’s finances and supporting financial health. Especially when used before you purchase your next vehicle. The car budget calculators, or auto finance calculators, in the Learning Center at Â鶹ֱ˛Ą Consumer USA’s website can help you understand just how much car you can buy.

Types of Auto Finance Calculators

In the Learning Center, you will find three finance calculators:

• Affordability. This calculator will help you determine how much you could finance, based on your desired monthly payment, term, annual percentage rate (APR) and down payment.
• Early payoff. Adding to your monthly payment can shorten your financing term and save money. See how in the Â鶹ֱ˛Ą Consumer USA payoff calculator.
• Monthly payment. Here’s how much your monthly payment would be based on the vehicle purchase price, financing term and down payment.

Why You Should Use an Auto Finance Calculator

An auto finance calculator, or car budget calculator, can help keep your finances organized and give a good snapshot of how not to go over your monthly budget. When you map out where all your money is going – housing, food, clothing, gas, entertainment, etc. ­– it’s easier to determine how much car you can afford to fit into your finances. Additionally, understanding such things as loan terms, budget management and doing comparisons of loan options, also can help you avoid added financial stress.

How to Calculate Auto Loan Interest and Payments

We’ve put together a few examples to show you how plugging numbers into the auto finance calculators can be quite helpful in figuring out a budget.

Based on the Â鶹ֱ˛Ą Consumer USA affordability calculator, for a desired monthly payment of $500, with a down payment of $1,000, you could finance about $22,300 – the remainder for a $23,300 vehicle – over 48 months at a 6% APR.

°Őłó±đĚýmonthly payment calculator confirms that a vehicle costing $23,300 with a $1,000 down payment and financing $22,300 would result in about a $500 monthly payment.

For more information about the difference between interest rate and APR, see this article.

The numbers you use may differ from those we have in the above example, but the three auto finance calculators should help you stay financially healthy after getting your car.

It’s a worthwhile calculation.

These statements are informational suggestions only and should not be construed as legal, accounting or professional advice, nor are they intended as a substitute for legal or professional guidance.

Â鶹ֱ˛Ą Consumer USA is not a credit counseling service and makes no representation about the responsible use or restoration of consumer credit.

The referenced calculators are meant for educational and illustrative purposes only. The calculators estimate amounts solely based on the information you provide. We do not guarantee the availability of the illustrated terms or your eligibility for any product referenced. The estimated amounts generated from the calculators do not constitute a finance offer.

The post Use auto finance calculators to estimate your car loan appeared first on Â鶹ֱ˛Ą Consumer USA.

Financing a vehicle purchase offers a convenient and affordable way for many people to get on the road. In return for those benefits, there are some borrowing costs involved and two of the most important are interest rate and annual percentage rate (APR). Knowing the difference between them and how they affect a loan can help you make both an informed and budget-friendly buy.

Interest rate and APR

Interest rate: The cost of borrowing money from a lender. An interest rate is charged on the principal loan amount, which is the sum you borrow to finance a vehicle.

APR: This is the overall cost of borrowing including the interest rate and additional fees charged with the financing, such as the origination and documentation fees.

Is it better to have a lower interest rate or APR?

It’s a case of the lower the better for the interest rate as well as APR because, together, they affect how much you will spend on your purchase. However, by taking into account added fees, APR provides the most accurate expression of your financing costs.

If you’re checking out the costs of different loan options, remember to compare interest rate to interest rate and APR to APR, rather than comparing the interest rate for one to the APR of another, so that you make a proper comparison.

How to get a lower rate

A lender will offer a qualified loan applicant an interest rate based, in part, on the risk involved in lending to them. Here are some approaches to help lower the risk and get a favorable rate.

Improve your credit scores

Credit scores, based on credit history, are a key factor in most lending decisions. Higher scores are associated with lower rates and there are several ways to improve your credit habits and potentially raise your scores. The Consumer Financial Protection Bureau recommends:

• Paying your bills on time, every time
• Using no more than 30% of your total credit limit
• Disputing and correcting any errors on your credit reports
• Only applying for the credit you need
• Maintaining good credit habits over time

Make a down payment

Any money you can put down, including the value of a trade-in, will reduce the amount you need to borrow and, in turn, lower the risk for a lender.

Consider a vehicle’s age

Financing for new vehicles tends to offer buyers lower rates than for used ones. Why is that? Should you fail to make your car payments and the lender attempts to repossess and then resell the vehicle to recoup the money it’s owed, a vehicle that was bought new will have a more predictable resale value.

Think about loan duration

Longer loans generally come with higher interest rates than shorter loans as the lender will have a lengthier wait to get their money back.

Team up with a co-applicant

Remember that you don’t have to go it alone. If your credit scores are low, for example, you may want to apply for financing with a creditworthy co-applicant to improve your borrowing position.

Shop real rates and payments

When you’re ready to purchase a new or used vehicle, see if you with Drive®, by Â鶹ֱ˛ĄÂ®. Pre-qualification is quick and easy, there’s no impact on your credit scores and it’s a smart way to set your expectations before completing a full financing application.

If you pre-qualify, you can use the to learn more about your financing options and shop for a vehicle that fits your budget. Then, if all your details check out at the dealership, you’ll receive the exact terms in your pre-qualification.

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