When you finance a car, you pay for the entire cost of a vehicle, regardless of how many miles you drive it.
You typically make a down payment, pay sales taxes in cash or roll them into your loan, and finance the loan at an interest rate set by your lender. You generally make your first payment a month after you sign your contract.
Later, you may decide to sell or trade the vehicle for its reduced resale value. You will still be responsible for paying the balance due on the loan, even if the car is worth less than the amount you owe.
