Car Buying – Own Financing Option
So you think it's high time you owned a car and the deal offered by your neighborhood
new cars dealer seems too tempting to join the group and
buy a car.
Here are some tips to keep in mind while signing the dotted line for your
new car's
finance option. Also check out the listed sites on
how to buy a car with less
than perfect credit.
While you are going to
buy a car, it is advisable that you plan your
finance and avail a
car buying loan before walking into your dealer's shop.
One very apt point here is that you get bargaining power over the dealer. Many times when you have
a pre-approved loan in your hands, you might as well carry cash and turn away if you do not
like what you are being offered. The dealer wouldn't be able to take you for a ride in this case.
This is true especially when you are
buying a new car. Getting and arranging
financing by yourself won't be as cumbersome as getting your dealer to arrange
car buying finance for you. For
car buying financing, you might
want to approach a bank or a
car buying finance company. Presently,
CarCredit.com and
DriverLoans.com are offering loans in a very aggressive manner to
borrowers for
buying a car. But be sure to check the complaints about the companies, if any, and also about the other companies you might want to consider. Especially if you have a bad credit, and you want to
buy a new car, it would help you to check out the non-dealer financing options available through these companies. One good thing a
car buying finance company or a bank would not do is try to raise the new car’s price, ignore trade-in credits or top up the debt with a lot of unwanted extras.
Online companies like
DriverLoans.com offer both the dealer and the car buyer a great
option to converge their interests.
CarCredit.com is especially designed for people with
bad credit, who are bankrupt, risk foreclosure or are divorced, some of the reasons for which
people are refused finance and cancel
buying a car.
Car Buying – Using the Dealership
If you are unable to line up a
car buying loan from any lender or bank,
check with your dealer and scout for an optimum offer on
buying a new car.
But you need to be careful as many dealers act as brokers for banks.
Ask your dealer about the various finance options he might have. This would also help you to make
up your mind on the make of the car and also on whether to
buy a car. For some
people, dealer financing is the only viable option when they plan to
buy a new car.
Companies (websites) like
MyAutoLoan.com,
HouseholdAuto.com,
RoadLoans.com and
SearchBargain.com offer a lot of finance options like refinancing your auto loan,
getting finance for
buying a car, for buying a used car and more. These companies
also are part of a dealer's captive finance network and aim to push a car deal
(
car buying) with the customer by offering low interest rates.
Many of these captive companies are run by the auto manufacturers themselves and have a main
motive of pushing the new and used car sales. A downside to this is that if you have a lower than 500 credit score,
you will be auto-rejected by the online
car buying loan application form.
You can never even reach the processing official. So it is always a prudent approach to check the
credits of a company very keenly before you decide to bring home your set of wheels!
You might fare well by knowing some inside info: New car dealers buy at a heavily discounted
rate (like 4.25%) and sell it to a gullible customer like you at a rate of 6.25%. The dealer
makes a cool 2% profit! Also, NEVER forget to carry your credit score with you when you decide
to
buy a new car. This score would help you know your tier and you could ask
him the "buy rate" for that tier. This would get you a rate lower than your approved rate.
And another important point is if you have a high credit score, the dealer might add you to his
portfolio. If you have "A" credit, he might help you to get someone with a "D" credit approved rate.
This really strengthens your position in getting a new car.
