If you are shopping for a new or used car, you may want to consider financing your vehicle at the dealership. In many instances, dealer financing can be a great deal that can save you time and money. However, it is important to understand fully the financing that is being offered by the dealer before you accept the terms.
Before you even begin looking for a car, it is essential to know how much you can afford to pay each month. You can use an online calculator to determine what your monthly payment will be based on the interest rate that you will pay. Once you know what you can afford, you should visit dealerships to find the new or used car that suits your needs and is in your price range. When you have found the right car for you, the dealer will ask you to fill out an application for their in-house financing or their partner lenders. If you are approved for a dealer auto loan, it is important to understand the terms of the agreement before purchasing your car.
Dealer Financing Terms
First, you should know what interest rate you will be paying on your dealer car loan. In many cases, the interest rate is negotiable so it is vital to understand what a good interest rate is for someone with your credit history. Also be sure that you know the term of your loan; most used car loans last for five years but there are shorter and longer terms available to borrowers.
Remember that the amount of your down payment will affect both the term of the loan as well as your monthly payment. You should always pay as much as you can afford on a down payment in order to finance the lowest amount possible. Also be aware of any rebates that the car dealership may be offering; dealerships often advertise rebates as a way to increase business. Finally, be sure that you are able to afford the monthly payment of the loan each month before signing any papers. Dealer financing can be a great deal as long as you fully understand the terms of the loan.
Getting a Dealer Auto Loan
Are you ready to find a dealer willing to finance you? We can help. We connect borrowers with dealers on a daily basis. Our network of dealer financing specialists covers all 50 states, even Canada. To get started, all you have to do is submit your application online. Even if your credit has seen better days, we typically get more than 50% of our customers pre-approved for financing the same day they apply. There are zero fees, obligations, or hassles associated with our service. We are compensated by lenders and dealers who want your business. Apply today!