Get Low Interest Financing before Going to the Dealership
by Bruce Sheridan
It's that time again, and whether you enjoy it or not, you need to buy your next vehicle. You know that you will need to get the cheapest financing you can get to buy it too, since you don't have all the cash up front. With so many dealerships offering their own in house financing these days, it's pretty much one stop shop to get everything that you need.
However, just because it is easier to get your financing in the same place that you buy your car does not always mean it is the best choice. It may be a much better idea to get offers for loans long before ever setting foot in a dealership; it all depends on your situation.
Shopping around for your car loans has a lot of immediate benefits. Every lender has different terms and conditions that they judge you by and some may give you much better offers than others. Things like interest rates, loan lengths and other things make a huge difference in how much you will pay in the long run, even for the lowest priced cars around.
Shopping multiple lenders will also give you a good idea of what you qualify for. If you only got one offer from one lender, you wouldn't really have a frame of reference to know if you are actually getting a good deal. Shopping around gives you a much clearer picture of where you stand.
Also, getting a loan first will allow you to see if the dealer can beat it. If they are able to beat the deal with their own financing, then you know that you just scored the best possible loan that you could. If they aren't able to beat it, then you are really in the same boat as before; it's a win-win situation.
However, just because it is easier to get your financing in the same place that you buy your car does not always mean it is the best choice. It may be a much better idea to get offers for loans long before ever setting foot in a dealership; it all depends on your situation.
Shopping around for your car loans has a lot of immediate benefits. Every lender has different terms and conditions that they judge you by and some may give you much better offers than others. Things like interest rates, loan lengths and other things make a huge difference in how much you will pay in the long run, even for the lowest priced cars around.
Shopping multiple lenders will also give you a good idea of what you qualify for. If you only got one offer from one lender, you wouldn't really have a frame of reference to know if you are actually getting a good deal. Shopping around gives you a much clearer picture of where you stand.
Also, getting a loan first will allow you to see if the dealer can beat it. If they are able to beat the deal with their own financing, then you know that you just scored the best possible loan that you could. If they aren't able to beat it, then you are really in the same boat as before; it's a win-win situation.
