Benefits of Financing Through a Car DealershipDecember 13, 2023
Looking to finance your car through a dealership? It's like having a personalized guide through the labyrinth of lenders. It's a one-stop-shop experience, streamlining your loan application and vehicle selection under one roof. No juggling multiple forms or running around; simply spot your dream car, and the financing process seamlessly falls into place.
Whether you're dealing with an independent dealership or one affiliated with a particular brand, both typically offer their tailored financing options. This could mean working with a finance company associated with the manufacturer, the dealership itself, or another trusted partner.
The aim of dealership financing is to make your journey to owning a car as smooth as possible.
Benefits of financing a car through a dealership:
1. Dealerships enable faster processing
Opting for dealership financing offers a speedy process. You can shop for your car, get financing approval, and drive it home on the same day. Just complete the paperwork, secure approval, and you're ready to hit the road in your new vehicle.
However, if you opt for external financing, the process takes longer. There's back-and-forth sharing of information between you, the dealership, and the lender. This often leads to waiting for days or even weeks to secure approval. Until the loan is finalized, you won't be able to take possession of your chosen vehicle.
2. Poor credit score doesn’t matter
When you're looking to buy in Canada with a poor credit score, getting financing can be tough. If your credit score doesn't qualify you for traditional financing, the dealership might provide in-house financing. Typically, this comes with a higher annual percentage rate, leading to higher monthly payments.
The upside, though, is that this car loan can be a chance to improve your credit score. By consistently managing and making timely payments on the loan, you have an opportunity to boost your credit rating.
3. Dealerships offer longer loan terms
Car dealerships frequently provide loan choices that aren't available through external lenders, such as longer loan terms. These extended terms enable you to buy a more expensive vehicle while keeping your monthly payments lower.
4. Dealerships offer promotional interest rates
Dealerships often roll out promotions at different times throughout the year, and a significant number of these promotions feature financing deals directly from the dealership or manufacturer. Some even include enticing zero-interest rate promotions.
The reason behind these perks is straightforward: the dealership profits when you purchase a vehicle. In contrast, if you opt for a bank loan, the bank makes money by charging you interest.
5. More vehicle options
One major advantage of purchasing a car at a dealership is the abundance of options available. With many dealerships showcasing a variety of car brands under one roof, buyers can explore different pre-owned vehicles all in one convenient location.
In addition to the diverse vehicle selection, dealerships provide options that others simply can't match, like extended warranties. For used car buyers seeking added protection beyond the manufacturer's warranty, dealerships are equipped to offer such coverage.
In conclusion, dealership financing streamlines your car-buying experience. With faster processing, credit flexibility, extended loan terms, promotional rates, and a diverse range of vehicle options, it's a comprehensive solution for your car purchase needs.