Financing a Car Through Auto Dealers: Is Worth It?
Believe it or not, your local preowned car dealerships in Houston, TX, could be your best bet for financing. Buyers often assume that dealer financing will automatically require higher interest rates or larger down payments. Fortunately, this is almost never true. Auto dealers frequently work with customers to give them excellent options on financing, and you may even be able to take advantage of special promotions.
One of the biggest selling points when considering dealer financing is the sheer convenience of it. You don’t have to make a trip to the bank or hunt down financing companies yourself. Instead, you can simply consider your financing choices while you’re already at the auto dealer. Normally, applying for a loan requires faxing paperwork, visiting various locations to sign documents, and it can be a surprisingly involved process. At your local dealership, you can save yourself a lot of the hassle and extra trips.
Auto dealers never work with just one lender. When they fax in your paperwork and help you find a viable financing plan, they submit it to all of their contacts at the same time. This saves you a considerable amount of time and headache, but it also encourages a bit of competition. This competitive advantage is used to help drive down rates so that you can get a better bargain. Since customers often don’t have access to financing companies owned by manufacturers or out-of-state banks, this wide-net approach is something you simply can’t duplicate yourself.
If you don’t have great credit, you’re in luck. Credit unions and banks can be a bit demanding when it comes to credit scores they expect. Dealerships understand that even people with bad credit or no credit still need a vehicle. With this in mind, many auto dealers do their best to tailor their financing options and programs to accommodate customers with low credit scores or blemished credit histories. Even if you think a bank or credit union would reject you, your local dealership could still help you find a reasonable financing plan.
Most banks and credit unions only offer extended terms, such as 72 months, for new vehicles. However, dealerships can grant extended terms for used vehicles, as well. This gives you the ability to lower your monthly payments to something that could be considerably more affordable.
Your local bank probably isn’t running any promotions on auto loans. Auto dealers do, and they usually have promotions multiple times a year. You could get cash back, guaranteed value for your trade-in, or 0% interest. You’re not going to find promotions like this at a credit union, but dealerships are happy to encourage and assist their customers.
Banks are known sometimes to be a bit draconian when it comes to a late or missed payment. They may mail out scary notices or official-looking letters. Auto dealers tend to be a bit more understanding and accommodating. If you know you’re going to be late or miss a payment, you can probably work out some arrangements. You might not even be charged a late fee.
As you can see, financing a used car doesn’t have to be a struggle. Preowned car dealerships in Houston, TX, are happy to help you find the right lender and financing plan to meet your needs. Speak with Bemer Motor Cars at (713) 266-2690 if you have any questions or would like to learn more.