Car Deals and Loans
For most people, car deals and loans are a way to get the car of their dreams at a price they can afford. Car dealers will try to convince you that loan deals are the only way to go, but there is another option that is more affordable. If you want the same type of car you would get from a dealer, there are dealerships that will provide you with used car deals and loans. These loans are usually known as “pre-owned cars” and you pay less money in interest over the life of the loan. Here is what to look for when searching for these types of car deals and loans.
The loans are available through local dealers. These dealers are in the business of selling used cars. They know the right questions to ask when working with customers who need used cars. They can match your specific needs to the most appropriate loan for you. Short term car deals and loans may offer lower interest rates, however, will cost more every month to maintain the vehicle.
Long term car deals and loans will offer you a lower monthly payment, however, you will have to pay a larger down payment. A down payment can also affect the interest rate of the loan. The best way to determine whether a used car deal is a good deal is to find a dealer who has satisfied past customers. You can get this information by asking how long they have been in business, the average interest rate offered for new loans, and the amount of money the dealership charges for new car sales. If a dealership is hesitant to share past customer information, move on to another dealer.
Getting the Best Deal Possible
Another important thing to consider when searching for financing is whether or not the lender will offer incentives to borrowers. Most car dealers offer some type of incentive program to attract and keep their customers. Incentives can include lower interest rate, automatic renewal on loan terms, or other such benefits. The key is to find out if the incentives will actually help to lower your monthly payments or if the lender is just looking to increase their profits at your expense. Read over all documentation before signing the paperwork to ensure that you are getting a true lower interest rate and better monthly payments.
Some lending institutions such as banks and credit unions offer specialized financing programs for buyers with less than perfect credit. These programs often times carry higher fees than general car dealer financing, and may require additional paperwork and may be subject to different approval criteria. The terms may be limited to only lower credit scores or specific types of vehicles. Before signing a contract with a dealer, do your research so you know what you are getting and what the terms of the loan will be.
Car dealerships often employ the services of finance and Fi managers who are experts at working with borrowers. Make certain you are comfortable with the manager and their methods of managing your finances. Do not hesitate to ask questions, and do not be afraid to look for additional options or better rates elsewhere. You should feel satisfied with the answers you get and be able to negotiate a good deal based upon the information you receive.