Car Buying Made Easy


Starting your vehicle search at your financial institution will actually make the entire process much more efficient.A common practice when buying a new or used vehicle is to go to the lot, pick the one you want and let the dealership do all the financing work for you. Sure, that is convenient, but it doesn’t always make your life easier in the long run. Starting your vehicle search at your financial institution will actually make the entire process much more efficient.

Here’s a quick overview to help you understand how:

Direct lending is the alternative to dealership financing mentioned above. Under direct lending, consumers receive a loan directly from a financial institution. Here, you agree to pay the amount financed plus interest over time. You still enter into a contract with the dealership to buy a vehicle as you would with dealership financing, but you use the loan from the direct lender to pay for the vehicle.

Advantages of direct lending include:

  • Better deals –Financial institutions offer auto financing rate deals and savings for numerous occasions throughout the year, and sometimes for no reason at all — they are just all-around lower rates than a dealer can offer.
  • More for your money –Going direct could save you much more money by getting that lower rate right off the bat or through refinancing. Then you can utilize the extra money in your car-buying budget to upgrade your vehicle of choice. More auto for the same amount of money is definitely a plus.
  • Peace of mind –Maybe more important than any other benefit, with direct lending, you have the time to shop around for the best rates and credit terms that fit your needs.
  • Credit terms in advance –Speaking of credit terms, when you obtain pre-approved financing before you buy the vehicle, you have that all-important “time” again to read and fully understand the terms to which you are agreeing.
  • Knowing what you can afford – Furthermore, with pre-approved financing, you know the exact price range in which to look for your car. No more getting your hopes up about a certain car only to get shot down by all the dealership lenders.

It’s highly unlikely that you sign on the dotted line for the first vehicle you see on the lot, so why would you jump at the first financing deal that you are offered? Shopping around for your auto financing is just as important — if not more so — than shopping around for the automobile that best suits you, so don’t settle for whatever the dealership has to offer.

 

Related Articles

Leave a Reply