Why Should You Get Car Financing Through a Dealership?
Now that you have a better understanding of auto financing, you may be wondering if you should apply with a car loan with a traditional lender or a dealership. Besides being the most convenient way to purchase a vehicle, dealership financing offers many other benefits over a car loan from a bank. The following are a few reasons why you should get financing through a dealership:
Easy approval: Banks are known for their stringent lending requirements. If your credit rating is less than stellar, you have to be prepared to face rejection if you apply for an auto loan with a bank. In contrast, a dealership can help you get approved for a loan even with bad credit. With their large lending network, they can connect you with loan providers that have more relaxed lending standards, such as smaller credit unions or alternative lenders.
More options: If you apply for car financing with a direct lender such as a bank or credit union, you'll likely have only one or two loan packages to choose from. Due to the lack of options, you may have to settle for less-than-ideal loan terms. A dealership has access to a wide array of auto financing solutions from many lenders, and they can find you a loan that meets all your needs and expectations.
Quick and easy process: Dealership financing is a more streamlined process than getting a bank loan. You won't have to worry about paperwork because the dealer's finance representatives will handle everything on your behalf. In most cases, you can get approval for your loan and drive away in your chosen car within a matter of hours.
Promotional offers: One of the main advantages of financing a car through a dealership is that you may be able to take advantage of financing specials. Some dealerships offer various financing specials on selected models throughout the year, including discount financing and even zero-percent financing. If you qualify for one of these special offers, you can substantially reduce the cost of your vehicle purchase.