If you’re checking out 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 car 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 car loan, but also makes the whole process of buying a new car easier.
How is dealer financing different?
Typically, dealer financing is when dealers make a loan to their customers. In a nutshell, it is an internal financing method in which; The dealer will either finance the car loan themselves or find a loan for you by visiting banks and credit unions, making sure you get the best loan. Finding a lender for your loan often becomes an extra task when shopping for cars. Dealer financing is different in that it keeps 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 case-usual scenario, you may have to make the rounds between the dealership lot to pick out 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 process 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, dealers often provide flexibility on auto loans. It means you can have flexibility in choosing a budget for your car, as well as deciding your monthly car loan payments. While all lenders make sure you don’t miss out on your loan payments, a dealer presents you with additional financing options that are flexible to your needs.
· No Discrimination Based on Credit Score
Ideally, it’s an agreement between you and the dealer to ensure you comfortably make your monthly payments. Therefore, while negotiating your car financing, the dealer will take into consideration much more than just your credit score. So if you have a bad credit history or a low credit score, you can still hope to get approved for your loan. Also, a credit booster can result since you are applying for a loan with a low credit score.
Dealer financing has its own set of benefits. From putting together a deal that can put you in a position to pay your monthly payments, boost your credit score, and get the car you want, a dealer-financed auto loan may be just what you need.