4 Reasons to Choose In-House Financing When Buying a Car
If you’re looking to purchase a car, you’re not alone. Annually, about 6 million cars are sold in the United States alone. But when it comes to purchasing a new car, there are a couple of things to consider. One of the most important things is how you’re going to finance your new car. While your dealer may present you with a couple of different options, here’s why you should choose in-house financing.
The Four Benefits of In House Financing
- A Smoother Process: When it comes to financing your new car, going through a third party can take longer than most of us would like. In-house new car financing is often times quicker, and it has the potential to include special warranties and flexible interest rates that a third party simply can’t offer. This option also means you’ll be driving away in your new vehicle sooner, as opposed to getting everything set and then waiting for loan approval that could take anywhere from a couple of hours to a few days! Overall in-house financing can make the purchasing process smoother, easier, and much faster.
- Easier Qualifications:
When looking into new car financing, your credit score can be an issue. For those struggling with poor to fair credit, in-house options are often easier to qualify for. While this doesn’t always mean the interest rates will be lower, refinancing is usually an option after a year of on-time monthly payments.
In-house new car financing also tends to be a much more flexible process. Because dealerships will often see large amounts of these applications, they understand the process and know how to work with people in all situations. This means they can better adapt to meet your budget and allow you to be more selective with the vehicle you want to purchase. In some instances, these deals can also come with a few incentives that can make the process even sweeter for you as a buyer.
- Building Credit:
When you purchase a car with in-house new car financing, it’s possible to see an increase in your credit score just a month or two after you’ve driven away. With continued on-time payments, your score can continue to improve, granting you a couple of benefits in the long run. With a better credit score, the next time you go to trade in your car you can expect even lower interest rates and a lower amount of money down if any at all. Outside of the automotive spectrum, an improved score can also help you obtain a mortgage or rental properties.
When it comes to financing a new car you have a couple of options; however, in many cases, in-house will serve you best. Whether you have great credit or poor credit, this option can grant you more flexibility and allow you to cut out the middleman to work directly with your dealership on pricing and payment options. Additionally, in-house financing will often come with warranties and incentives that third party institutions simply cannot offer. Overall, if you want to get the most bang for your buck, speak with your dealer about what their personal financing options can do for you