Though leasing might be a good option if you're tight on cash and have a poor credit history, it can be difficult to qualify. Most low-interest and ﾓno down payment" lease incentives are based on credit approval. Cars Direct states if you don't have a credit score above 720, those good deals might not be available.

1. Understand your credit score before you go to the dealership. 2. If your credit isn't perfect, get financing quotes before you go. 3. Keep the term as short as you can afford. 4. Put 20 percent down. 5. Pay for taxes, fees, and extras with cash. 6. Gap insurance. 7. When to refinance a car loan.

In direct lending, you get a loan directly from a bank, finance company, or credit union. You agree to pay, over a period of time, the amount financed, plus a finance charge. Once you enter into a contract with a dealership to buy a vehicle, you use the loan from the direct lender to pay for the vehicle.