Getting a Car Loan: Why Financing Through the Dealership is a Viable Option

Many people shop for car loans at banks or credit unions, but dealerships often offer financing options of their own. Though you may be able to secure a perfectly favorable loan from a bank, there are several reasons why financing your new car through the dealership itself may be worth considering.

Simplicity

When you’re getting a loan through the dealership, the process suddenly becomes simpler. You are saved the homework of getting preapproved by a bank or other financial institution, and you have less pressure to haggle with the dealership over money. Instead, you’re working with them to find the best financing option for you in conjunction with the particular vehicle that you’re interested in purchasing.

Speed

Many dealerships are able to process and approve your loan far more quickly than any bank. In a number of cases, people can get their loan from a dealer and bring their new car home that same day, which is a very convenient option for everyone involved.

Availability

When applying for car loans through a dealership, you will likely find out that they examine your credit score and history less critically than banks do. Therefore, your chances of getting approved without a perfect credit score are generally higher. This can be beneficial if you’re dealing with some tough financial times, but still need to get a good car.

Flexibility

Another benefit of financing through the dealership itself is that their rates are often less rigid than a bank. More so than banks can, dealerships are usually able to work out a deal with you that benefits both parties.

While many people shop for car loans at different credit unions, banks, and other financial institutions, it may be worth researching loan options provided by the car dealership. The above factors are some strong reasons why getting a loan through the dealership may work well as you shop for the vehicle that’s right for you and your family.

Quick Ways to Boost Your Credit Score Before Getting a Car

If you have bad credit, you might be understandably nervous if you need dealer financing to buy a new car. While there are bad credit car loans that can help you out, you can help yourself by doing everything you can to boost your credit score before applying for financing. Try a few good tips in the months leading up to your purchase.

 

Look At Your Credit Report

 

If you haven’t already, order your free credit report and take a look at it to see if there’s any out-of-date or incorrect information that needs to be cleared up before lenders run your credit. Should there be any inaccurate information on your report, getting it cleared up could boost your credit score a few points. Make sure you request a free report from both Equifax Canada and TransUnion Canada.

 

Take Care of As Much of Your Debt As Possible

 

Do everything you can to pay down your smaller debts before you apply for financing. In addition to smaller amounts owed, focusing on those that have higher interest rates is also a good idea. A sizeable percentage of your credit score is determined by how much of your credit limit you’re currently using, so getting that number as low as you can is sure to go a long way in polishing that credit score.

 

Increase Your Credit Limit

 

Going back to your credit limit, there’s a chance you might qualify for a higher credit limit with your current credit card companies. You’ll have a better chance of being approved for a limit increase if you’ve paid your credit card bill on time, have been a customer for a while and don’t use too much of your credit. If you’re approved for a limit increase, pretend as if your limit hasn’t changed to keep your credit limit use low on your credit report and your credit score high.

 

If you can only boost your score by a few points, that’s better than nothing. Lenders like to see you making an effort, and that effort could help you receive approval for your loan.

Benefits of Bad Credit Car Loans

When you have bad credit, it can sometimes seem like you will never get out from under the score, this is where we can help. Not only can we get you into a quality new or used vehicle, we can also help you get bad credit car loans. These loans can do more than just get you a new ride, however, they can also help rebuild your credit.

 

Get a New-To-You Ride

 

The most obvious benefit of bad credit car loans is that you can get a new ride for yourself and your family. This means that you can more effectively get to work and run errands. You can upgrade to a bigger vehicle, get one more fit for work and much more. We will help you find the right automobile for your needs and help you get the loan to afford it. You can find a variety of vehicles to meet your needs for seating and storage in new or used makes and models.

 

Rebuild Your Credit

 

The fastest way to rebuild your credit is to have a loan in good standing or a successfully completed loan on your credit report. By getting a car loan, you can also get a reliable ride to and from work or around town. This can give you the opportunity to restart or rebuild your credit because every on-time payment will add to your score and a completed loan will bump it up faster. This can help you get better terms on future loans and for bigger purchases.

 

You may think that the only benefit of bad credit car loans is getting you a new or used vehicle to get around in; however, the right loan can help you rebuild your credit. By coming down to the dealership, you can sit down with a loan officer and go over your financing options before you go shopping for a new ride.

The Benefits of Securing a Car Loan at the Dealership

In order to make any large purchase, you must decide how you are going to pay for it. Unless you have the full price of the car saved when you are ready to buy, you will likely need to finance the vehicle into reasonable monthly payments. Sailing through the sea of car loans can be a hassle, though. To help you navigate those waters, the dealership can offer both financing and deals that you cannot get anywhere else.

 

Customized Lending

 

Financing your next vehicle through the dealership is a great way to find the loan that is perfect for your life and your budget. We are highly motivated to help you find the loan that makes buying a car off our lot possible. The dealership fosters relationships with lenders and is therefore better able to assist you with finding the right lender and the right loan for you. If you need to extend the term of your loan or need a loan that caters to mediocre credit, the dealership’s experience can come in handy. We want to see you driving off in your next car as soon as possible, and we will work to get you the financing to make that happen.

 

Special Deals

 

If you have great credit, getting a loan through the dealership can come with even more perks. Periodically, car manufacturers will offer limited time deals through their franchises. For example, some dealerships are able to finance an introductory interest rate of 0% on a newly purchased vehicle. At other times, discounts might be given off the total price of the car. Only by establishing car loans through the dealership are you are able to take advantage of these deals when they are offered.

 

There may be many ways to pay for your next vehicle, but only one way lets you take advantage of the experience and special deals offered by the dealership. Securing your car loan where you buy it has its benefits.

Five Steps to Getting a Loan With Poor Credit

Reversing poor credit requires hard work, and that hard work is even more challenging when you don’t have a car. Fortunately, there are some steps you can take to get transportation to and from your job.

 

One: Have an Open Mind

 

With a poor credit history, you probably won’t be able to secure a traditional loan, but you may have more success with bad credit car loans. These typically have higher interest rates, so be prepared to pay a little more.

 

Two: Stay Away From Additional Credit

 

One of the most common mistakes people make when using credit to make a major purchase is to open up a new credit card or account. You may want to take a look at your credit history, checking for errors and correcting inconsistencies.

 

Three: Be Realistic Concerning What You Can Afford

 

There are two important parts to this. The first is your monthly payment. Consider your most difficult months and determine how much of a payment you’d be able to make at those times. Your car payment probably shouldn’t be much more than that. The second thing to consider is the overall cost of the vehicle. Consider how much you’ll have to pay as a down payment, how much maintenance the vehicle will require, and how much gas and insurance will cost.

 

Four: Try to Find a Co-Signer

 

If you have a friend or family member with good credit, you can improve your chances for getting a loan. The terms of that loan will also be easier to live with. That co-signer (or co-borrower for even more benefits) will give the lender assurance that the loan will be paid, even if you struggle to make payments.

 

Five: Don’t Settle

 

While being realistic about your options, you can still discuss better terms, such as the length of the loan, the interest rate, prepayment penalties, and annual percentage rate. Factors such  as the prepayment penalty may be much easier to get rid of, whereas the interest rate may be harder to negotiate.

 

Poor credit will make obtaining a loan more difficult, but it shouldn’t prevent you from getting a car. Use these tips to improve your chances.

How In-House Used Car Financing Can Benefit You as a Student

If you need a quality used car to get to your college or university classes and to your part-time job, your limited credit history may result in a low credit score. However, there are several alternative to traditional loans, such as bad credit car loans and in-house financing. In fact, as a student, in-house vehicle financing may benefit you, and we’re here to show you how.

 

More Loan Options

 

Used car dealerships that offer in-house financing often have a variety of loan options available that you may not be able to get from a lender that is more demanding. While you may not get the best interest rates, many dealerships are willing to work with students that have a limited credit history. It’s a good idea to learn about more than one type of loan from your dealership before you settle on one that meets your budget.

 

Convenience

 

A full load of classes, work and family obligations probably keep you busy all day, every day, so paying for your car in a way that is convenient is probably going to be important to you. In-house financing means you pay the dealership directly, so you can drop payments off on the way to or from school or even after your evening class, since some dealerships are open in the evening. Making your payments on time and in a way that is simple can help boost your credit score and enable you to keep your daily schedule flowing.

 

A Chance to Build Credit

 

As a young person with limited credit options, using bad credit car loans and in-house financing can actually improve your credit history. As you make payments and work toward meeting your loan’s requirements, you might see your credit score climb. Using in-house financing can start you down the path to building an excellent credit score for the future.

 

Owning a quality used car can make life as a student much more convenient. If you have a limited credit history, then using in-house financing might help this goal within reach.