Chances are, if you’re planning to buy or lease a new car or truck, you’re part of the increasing majority of consumers who do their homework well in advance of taking a test drive. Many consumers research pricing information, features and options, colors, specifications, safety and quality ratings. But if you’re not paying cash for your vehicle, do you check interest rates, your credit score, and financing options with the same intensity? If not, you should.

In most cases, the dealership will work with you to explore financing options that fit your budget. But it’s always a good idea to have a solid game plan on financing and understand your options before you set foot in a dealership. A recent study by J.D. Power and Associates shows that more consumers are obtaining financing from non-dealer sources such as banks, credit unions, and online lenders. Currently, more than one in five luxury vehicle buyers secure financing without assistance from the dealer. The auto loan financing market is becoming increasingly crowded. As banks, credit unions, and independent lenders become more active in automotive financing, manufacturer-sponsored financing programs offered by dealers will face pressure to become even more competitive.

The study also finds that leasing, which gained popularity in the ’90s, is on the upswing again for the first time in five years. In 2005, 64% of all luxury vehicles were leased, up from 55% in 2004. Similarly, the lease rate for non-luxury vehicles was up 4% during the same period, from 18% to 22%. Leasing is becoming more popular, in part, due to rising interest rates. The average interest rate paid by luxury vehicle buyers increased from 3.9% in 2004 to 4.5% in 2005, and rates paid by non-luxury vehicle buyers increased from 4.2% in 2004 to 5% in 2005.