Those of you who want to buy a new car but don’t have the funds necessary for it will definitely contact money lenders. But, before you do so, think of a situation where you are already buying a service from a company and opt for a supporting service from a different company. It surely doesn’t make any sense when you go for two different companies for two related services. Similarly, in some way, car financing is related to car dealership.
There are different ways to get finance for buying a car. One of the most attractive car financing method is instant auto financing. But, getting car finance from a car dealer has many advantages. In olden days, the only way to get finance for a car is through car dealers but nowadays there are several financing companies for this specific purpose. It would be easy for you to fill an additional loan form while filling a form for your new car. It is for sure that dealership financing is one of the simplest financing methods. When you compare their interest rates with that of bank loans, you will surely find car dealership financing advantageous.
There are some disadvantages with car dealership financing. Sometimes, your car dealer may contact other money lenders on your behalf. You may think that they are doing a big favor for you. But, in reality, they will charge an interest rate more than the money lender. So, if you contact the loaner directly, you may get reduced loan rates when compared with car dealership loan.
Also, when you get a loan from your car dealer, ensure that you understand the terms to the full extent including the interest rate, down payment time, etc. If you think that you will be able to afford it, you may proceed by taking a copy of the contract duly filled by you and the dealer. Also, some dealers offer lower interest rates for specific models of car but do not reduce the rate of the car. At these times, you should choose wisely depending upon your financial status. If you are able to accept very small down payment time, then this is not beneficial to you. But, if you need a big down payment time, this is the most suited plan for you.
Though dealership loans may prove beneficial to most customers, it is strongly recommended to contact direct loaners as each one is good at his job.