It is an all too common story. You have found that perfect vehicle you know will meet all of your needs. More importantly, you are sure it will deliver the exact driving experience you want cruising down the road. The hitch? How are you going to afford it?This is the challenge many potential vehicle owners experience every day. It is no secret that a new vehicle isn’t a cheap buy. Even affordable options can stretch the budget. The real challenge is how to actually buy something new without breaking the bank.If you’re fortunate enough to be able to purchase something outright, good for you. Unfortunately, most people are in a different boat. Financing is the number one method of affording a new car, truck, or SUV. While a good auto loan can take the pressure off of the expensive price tag, the process of applying for one brings its own set of headaches.Depending on your credit history and loan source, it can be downright frustrating to find the perfect financing options for you. Most people start with the most logical place: the bank. The reason for this is simple: banks deal with money every single day so they must be the best option for financing.This logic is flawed. Yes, banks are a good source of certain types of loans but their application standards can be too limiting and restrictive for certain individuals. More importantly, they remain disconnected from the vehicle buying process. In other words, the person giving you a loan won’t be able to help you with any questions and concerns you have about buying a new vehicle.That is why you should look to a dealership for an auto loan first. Most dealerships have departments and financing centers that specialize in finding the best deals and auto loans for their customers.
The Challenges of Any Auto Loan
Regardless of where you explore your financing options, you have to go into the process with a clear understanding of what will be expected of you. Since no one will just hand over money with a handshake promise that you will pay it back, there will be a few hurdles. This application process will come down to a few different factors related to your financial history.Most people are aware that credit scores come into play. In short, the better credit score you have, the better auto loan you may qualify for. You might qualify for a higher loan, better interest rate, or better payment timeline that will work out in your favor.Most traditional banks have a specific cut off they enforce when considering auto loan applications. This will vary depending on the bank but usually excludes people with poor or bad credit. Many banks and credit unions simply don’t want to take on the added risk of loaning out money to someone with a bad financial history. Things get complicated when someone fails to keep up with the payments or must forfeit on the loan altogether.This doesn’t mean your options are limited, however, if you have bad credit. While typical banks and credit unions might be off the table, you can still take advantage of auto loans given through dealerships. More importantly, you can also have access to the added perks and benefits you will get by working with a dealership throughout the vehicle buying process.
The Buy Here Pay Here Philosophy
It goes by many names but the idea is still the same. When you explore your financing options through a dealership instead of a bank, you are keeping everything under one roof. That means you will have access to a whole group of staff members and experts who specialize in finding the right vehicle, exploring your payment options, and discovering any deals and promotions going on that will save you money in the end.When you can do this all in one location, you get the added benefit of convenience. You don’t have to continue driving around to different places to talk to a hundred different individuals. Instead, you will stay on the same lot talking to people who know everything about the make, models, and financing options of that dealership.More importantly, everyone you talk to will be committed to getting you the best deal. Sure, car salespeople tend to get a bad rap, but these individuals are the rare exception. When a dealership does things right, they know how to hire the absolute best for each of their departments. From individuals to show you different car options to the financing experts, everyone will share the same goal: getting you the vehicle you want at a great price with a manageable payment method.The “buy here pay here” philosophy, especially works with those individuals with bad credit. If you have a credit score history that normal banks would simply ignore, most dealerships are likely to give you more attention to make a vehicle affordable. Bad credit auto loans, for example, are one option that many dealerships offer.
Understanding Bad Credit Auto Loans
The basic idea of a bad credit auto loan is to accept someone with a poor financial history. This means the dealership is willing to take a greater risk on a potential customer knowing that an auto loan may be the only way to purchase a vehicle.It’s important to understand the particulars of a bad credit auto loan before you sign any contracts. The way dealerships minimize the risk is with higher interest rates and stricter payment deadlines. You may find such loans to be more limited or specific to the vehicle that you want, but in the end, they will get the job done. In other words, you’ll be able to afford the vehicle you want in a manner that will still be manageable.This is where the dealership advantage truly shines. By speaking to financing experts right there on a lot, you can ask any questions you have in the moment. These experts will be able to give you all the information and details necessary, in a clear and concise manner, for you to feel good with this type of loan. You will have all the information you need to make the right choice for you and your financial future.
Keeping everything under one roof is the best way to explore your financial options. When everyone wears the same uniform with the same dealership logo, you can rest assured that you are in good hands. More importantly, you will know that you are in a place that has your best interests at heart.
Yes, all dealerships need to make a sale to survive. Great dealerships, however, know how to thrive on customer satisfaction and loyalty. This makes them more likely to make sure you are happy before going through with the final purchase. This creates a win-win situation for everyone involved.
The bottom line is to start with a dealership to explore your automotive financing options. Whether you want to take advantage of the “buy here pay here” philosophy or simply want to cut down on the amount of driving required, keeping everything under the same roof is the best way to get a great vehicle in an affordable manner at the same time.