Get car financing off the lot to ensure success
Posted on Wednesday, October 17, 2012 at 11:35:43 AM
It's not secret that a lot of private lenders are looking to help even those with terrible credit histories get auto financing, and with the economy showing positive indicators for the first time since the recession began, getting good terms on these loans is very plausible. For those looking to get a used car now that money is no longer tight, getting a loan before going to the dealership can also help secure a better deal.
The industry has seen a surge in car loans, Bloomberg reported, thanks to lenders feeling more confident about the market and those with existing borrowing plans making good on these balances for some time now. With fewer defaults and more new cars on the lot, dealerships and manufacturers are pressed to offer better deals and more financing options. However, instead of going with on-the-lot loans, going to a private lender will allow consumers to shop for lower interest rates and more preferable lending terms.
As The Day pointed out, getting a loan through a dealership always carries markups for the salesman's commission and the business' profits. Pursuing private auto financing options gives shoppers more control throughout the process and a better term for the duration of the loan.