The most common way that people secure their auto financing today is through the dealership. Whether you’re buying a new car or a used one, there are some definite benefits. In fact, last year more than 40 million car loans were give via dealerships.
Dealer financing is the choice many people make to secure their car loan for a number of good reasons. First of all, dealerships have access to a number of different financing sources. The volume of loans that they do with those financing sources helps them to secure agreements that are very competitive. In many ways, this is a boon to the consumer because it means the dealer has already gone through the process of finding the best possible financing agreements around.
This relationship with multiple financing sources also gives the dealership a flexibility that other lenders may not have. For example, a dealer is often able to secure auto financing for people with bad credit histories. In fact, there are dealerships that specialize in working with lenders who will give people with bankruptcy and other credit blemishes a chance to finance a vehicle.
Finally, dealer financing means that you can do everything you need to do to get your vehicle all in one place. There’s no driving back and forth from the bank. You simply choose your car, agree on a price, sign the papers and go.