If you’ve been looking at used cars but are worried about how you’ll finance one, consider doing so through the dealership. Financing your used vehicle purchase through the dealer offers several advantages.
It’s Easier to Do
If you try to finance a used vehicle purchase through a traditional lender, you could find yourself stuck. Between gathering all the proper paperwork, talking to the financer and waiting for a response, you might be immobile for days or longer. This is especially detrimental if you need a vehicle right away to get to work or to handle other responsibilities. Dealership financing usually offers more flexible interest rates and better warranty offers, not to mention the ability to drive a car off the lot the same day.
You Could Find Better Options
Dealerships sometimes provide rebates or credits that you wouldn’t receive if you went through a traditional lender. You could receive much lower interest rates for the first few months to a year. In addition, extended financing might be an option, which will make it easier for you to pay back your loan over a number of years if you can’t afford the larger monthly payments commonly associated with receiving financing from a bank or other lender.
Financing Is Available for Those With Bad Credit
If your credit is less than perfect, you aren’t very likely to receive a loan from a non-dealership lender, and if you do, you’ll probably have much higher interest rates or other “penalties” tacked on. Dealerships are more willing to work with people who have bad credit. You will likely still have a higher payment or interest rate initially, but you will also be able to refinance within a few months, which is not usually an option with other lenders.
Even something as simple as checking review from former customers could keep you from making a bad decision.