Second to buying a new home, purchasing a new set of wheels may be one of the biggest financial decisions you’ll ever make. After all, you spend a lot of time in your car each day, and you want to fall in love with what you buy.
However, a new car is also a major expense. Before diving in, you need to make sure you can purchase the car without being strapped for cash from month to month. It’s essential to find a car within your budget and with terms that benefit you financially. All of these thoughts are major considerations as you navigate the world of car loans, monthly payments, interest rates, and everything else that comes with the process of purchasing a new car. That said, most people can’t afford to pay cash for a car. Even with a trade-in vehicle, it can be difficult to muster enough to cover the costs up front.
That’s where effective financing comes into play. As you begin to search for ways to finance your new car, it’s important to clearly understand all the options. Obtaining a loan from a financial institution is the most popular way to get money for a purchase such as this, but it can come with plenty of hoops. Another feasible option is to obtain in house car financing. An in house car financing dealership may have a leg up on other third-party financiers for a variety of reasons. Here are some of the more obvious benefits of purchasing your car from a dealership that offers in house car financing.
Bad credit or no credit can often be a stumbling block for obtaining a car loan from larger for-profit banks and financial institutions. These institutions carefully review your assets as well as your work and credit history and make low-risk loans accordingly.
Regardless of how you got yourself into this predicament, you may discover that purchasing from an in house car financing dealership may be your best bet. Car dealers who offer in house car financing are generally more lenient and make the approval process a bit easier. That said, you can expect to pay higher interest rates and will probably incur a higher monthly payment. On the bright side, the barrier to entry is removed, and you’ll have the opportunity to refinance after one year of consistent, timely payments. This is definitely an excellent option for those in a tough spot with their credit.
Another major advantage of purchasing through a dealership that offers in house car financing is that you’ll most likely get keys to your new car much quicker! You can avoid all the hoopla and time it takes to get pre-approval from a bank. The pre-approval process with an in house car financing dealership is much smoother, and you’ll have more flexibility with interest rates and warranty options. In house financing car dealerships receive a ton of applications each day, so their pre-approval process is highly efficient, and their turnaround time is generally top-notch. You’ll find you can drive your shiny new car off the lot the same day if you play your cards right. This sounds like a much better bet than spending two weeks collecting proof and paperwork and working through all the details that go with the loan process from a third party.
Car dealerships have the inside connection with the actual car manufacturer. As such, they are often the first to know if a new model is soon to be released or if a particular model simply isn’t selling very well. In these unique circumstances, the car dealership is looking to get these cars off the lot and are often able to offer you an even deeper discount on particular makes and models. These deals are sometimes packaged with the dealership’s special financing requirements so you’ll only be offered these steals when working directly with their team of in house car financing experts.
With this knowledge in your back pocket, it’s always worth the time to do a little research prior to visiting a dealership. If you have a particular car style in mind, it’s a good idea to know when the latest model was released and when the next one will be on its way. You might also do a little research on “best sellers” vs. the “not so popular” styles. Equipped with this information, you’ll be fully prepared to negotiate a deal!
Anyone who has recently dealt with an in house car financing dealership can attest to the possibility of a jump in credit score. Purchasing a car with financing through an in house financing car dealership is one of the best ways to quickly get you back on track towards achieving your financial goals. In house car financing gives you a fresh set of responsibilities and provides the opportunity to establish yourself for future loan needs. Make sure you pay on time and consider doubling your payment at least once per year. This may do wonders for your credit score and get you back to where you need to be!
Yes, purchasing a new car can be pretty daunting. However, our Automax dealerships in North Carolina - in Raleigh, Durham, Youngsville, and Henderson - offer in house car financing that’s simply hard to resist. We can get you squared away with new wheels in a matter of minutes.
Our team is flexible, fun, and low-pressure, so your car buying experience should be a great experience every single time. If you have any questions at all regarding finance pros and cons, we can walk you through the steps in a way that makes sense. Give us a call or visit one of our highly rated dealerships. We’re here to help you find and finance your dream ride! What are you waiting for?