Why should you choose dealer financing?
If you’re looking at used cars or new cars for your next purchase, there’s a good chance you’ll choose auto loans as your preferred financing option. Due to the current state of the economy, not many potential car buyers choose to pay cash for their new car purchase. Most drivers opt for auto loans. There are numerous ways to obtain financing for the purchase of your new car, some being easier than others. Dealer financing is one of the preferred methods that not only helps you get a custom auto loan, but also makes the whole new car buying process easier.
How is dealer financing different?
Typically, dealer financing is when dealers provide a loan to their customers. In short, it is an internal financing method in which; The dealer will either finance the car loan himself or find a loan for you by visiting banks and credit unions, making sure you get the best loan. Usually when you’re shopping for cars, finding a lender for your loan becomes an extra chore. Dealer financing is different in its aspect of keeping the transaction strictly between the buyer and the dealer, which makes the whole process much simpler.
What are the reasons for choosing dealer financing?
· convenience
One of the best parts about choosing dealer financing is that everything you need for your car purchase is available under one roof. In a business as usual scenario, you may have to make the rounds between the dealer lot to pick your car and the third party lender to get an auto loan. However, with dealer financing, the process is simplified as your dealer becomes your lender. It’s convenient in the sense that you can choose the car you like while you apply for the car loan, all in the same place.
· flexibility
Getting a car loan tailored to fit your needs is another feature of dealer financing. Because it’s a more realistic approach, dealerships often provide flexibility on auto loans. It means you can have flexibility in choosing a budget for your car, as well as deciding the monthly payments on your car loan. While all lenders make sure you don’t miss your loan payments, a dealership presents you with additional financing options that are flexible based on your needs.
· No Discrimination Based on Credit Score
Ideally, it’s an agreement between you and the dealer to ensure that you make the monthly payments comfortably. So when negotiating your car financing, the dealership will take much more into consideration than just your credit score. So if you have a bad credit history or a low credit score, you can still wait to get your loan approved. Also, it can be a credit booster since you are applying for a loan with a low credit score.
Dealer financing has its own set of benefits. From making arrangements that put you in a position to pay your monthly payments, increase your credit score, and get the car you want, a dealer-financed car loan may be just what you need.
