Car dealerships frequently get a terrible reputation amongst people in the marketplace for a brand new or used vehicle. There’s frequently a want to haggle with the income character concerning the very last price, and an intimidating stack of office work that makes it tough to recognize if you’re getting a great deal.
One of the most common points of discussion is financing directly through the dealer. Although it has a poor reputation, all is not lost when you get a car loan through the dealership. Let’s go over a few benefits.
You Can’t Beat the Convenience of a Car Dealership
Most people looking for a new or used vehicle to buy are drawn to the ease and convenience of financing through the dealership. If you’ve found the car you want at a price that meets your budget needs through a dealer, it is simple to apply for an auto loan at the same location.
Everything is completed at the dealership, including income verification, a credit check, and any transfer of money for a down payment. Instead of jumping from bank to bank to find the best deal, you can simply select and finance your vehicle at a one-stop-shop.
Higher Loan Amounts
Some dealerships also offer the advantage of financing the full amount of the vehicle being purchased, as well as the expenses associated with transferring the title, paying taxes on the sale, and any other licensing needs. Each of these costs can be easily rolled into the new car loan and then paid down over time. While this makes the loan larger than it would be if you paid these additional expenses out of pocket, it is helpful in getting through the process without having to open your wallet.
Flexible Repayment Terms
For those who have evaluated their options and the higher financing amounts, dealership auto loans typically come with more flexibility than a loan through your bank or credit union. For instance, banks and credit unions often cap the number of months you can extend your loan based on the amount of your loan or the age of the vehicle. Dealership financing is less restrictive, providing loan terms of up to 60 months for well-qualified borrowers which makes your monthly minimum payment more manageable.
Dealer financing may well turn out to be a great option for you if you have perfect credit and know that you can afford the car payment. Regardless, you’ll be in the driver’s seat if you do your homework first and know exactly what your other direct lending options are through a bank or credit union. Even if you don’t go with one of their products, you may be able to use the information as leverage to gain a better offer with the dealer.
Our process is simple and easy
Get Pre-Qualified by Phone! Sharing your information with many dealers can be scary. We are up-front about what we can and can’t do. This is why one of our finance specialists will pre-qualify you to ensure your credit isn’t pulled for no reason and your time isn’t wasted!
If you’d like more information about financing a car with a low or no down payment, or to learn about any of our auto dealer services, speak to one of our finance specialists at the Auto Cave today