answersLogoWhite

0


Best Answer

If you decide to finance your new car, be aware that the financing obtained by the dealer, even if the dealer contacts lenders on your behalf, may not be the best deal you can get. Contact lenders directly. Compare the financing they offer you with the financing the dealer offers you. Because offers vary, shop around for the best deal, comparing the annual percentage rate (APR) and the length of the loan. When negotiating to finance a car, be wary of focusing only on the monthly payment. The total amount you will pay depends on the price of the car you negotiate, the APR, and the length of the loan.

Sometimes, dealers offer very low financing rates for specific cars or models, but may not be willing to negotiate on the price of these cars. To qualify for the special rates, you may be required to make a large down payment. With these conditions, you may find that it's sometimes more affordable to pay higher financing charges on a car that is lower in price or to buy a car that requires a smaller down payment.

Before you sign a contract to purchase or finance the car, consider the terms of the financing and evaluate whether it is affordable. Before you drive off the lot, be sure to have a copy of the contract that both you and the dealer have signed and be sure that all blanks are filled in.

Some dealers and lenders may ask you to buy credit insurance to pay off your loan if you should die or become disabled. Before you buy credit insurance, consider the cost, and whether it's worthwhile. Check your existing policies to avoid duplicating benefits. Credit insurance is not required by federal law. If your dealer requires you to buy credit insurance for car financing, it must be included in the cost of credit. That is, it must be reflected in the APR. Your state Attorney General also may have requirements about credit insurance. Check with your state Insurance Commissioner or state consumer protection agency.

If you don't have great credit, getting financing from the dealer may be your only choice (for either new or used cars). Because the dealer wants to sell you a car, he or his finance company is more likely to make you a loan. Be aware, however, that the APR is likely to be higher, or the price of the car may be higher than a similar model sold by somebody else. That said, if you need a car, sometimes you gotta do what you gotta do.

User Avatar

Wiki User

โˆ™ 2010-05-22 20:42:56
This answer is:
User Avatar
Study guides

Health

21 cards

Im with someone in the army and we want to get married asap but would he get into trouble he is 21 and im 16

What does teachorous mean

What is the first aid treatment for arterial bleeding

What is the difference between an intentional and unintentional injury

โžก๏ธ
See all cards
3.41
โ˜†โ˜…โ˜†โ˜…โ˜†โ˜…โ˜†โ˜…โ˜†โ˜…
46 Reviews

Add your answer:

Earn +20 pts
Q: Should you get financing from the car dealer?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What if a car dealer takes your deposit but then can't get financing?

If the financing was being arranged by the dealer he should return your deposit. However, if you were arranging the financing then it is not his fault and depending on the wording of your contract he may be entitled to keep your deposit.


How long does a dealer of a used car have to find you financing you have had a car for over 45 days and the dealer keeps saying they are searching for financing?

Why don't you go find your own financing. It is not his responsibility, it is yours. You are the one buying the car.


Can your car be repossed by the car dealership if i was never approved for financing?

You were never approved for financing to buy the car thus you do not own the car and the dealer has the right to his property....so yes they can


Where can one go to be approved for car financing?

One can go to be approved for car financing at a local car dealer and applying there. One of the most important things you will need is good "credit".


Can a car dealer change his mind and get his car back?

They usually don't change their mind. What happens is a dealer sales you a car and lets you drive off thinking the purchase is complete when in fact they do not have the financing secured. This happens mainly on weekends and after normal business hour purchases. If they are unable to secure the financing they will want the car back or you to get financing of your own.


Can I file a lawsuit if a car dealer lies about the financing terms for a car?

"Caveat Emptor." As a consumer, you are to rely on the details of the paperwork and contract for financing, not what was allegedly promised/said by a car dealer. The dealer will likely claim that a) he said no such thing or b) you misunderstood. No matter, it is the signed contract that will be presented and the terms to which you will be held.


In what state is the Fathers and Sons dealer group headquartered?

The Fathers and Sons Dealer Group is located at 989 Memorial Avenue, West Springfield, MA. This is a car dealership and they also provide financing should one purchase a car.


Where can you get free information about car financing?

You can get free information about car financing from either a bank or a car dealership. You might also want to check with your insurance company. If you are buying a car from a dealer, I would talk with them first.


Why is car dealer financing more costly than getting a loan from a bank?

There are many reasons why car dealer financing is more costly than getting a loan from the bank. It is more costly because car dealers are usually in the business of making large amounts of money.


What is the most reputable car dealer website?

The most reputable car dealer website is CarsDirect because it is a good resource for research on used car listings. It offers information on financing, rebates, and incentives as well.


Can a dealer make you return a car after you buy it?

No, unless you are using financing to get the car. Then they can take the car back due to not being able to get you qualified for the loan amount.


Can I finance my new car on site at an auto dealer?

Most new car dealers will offer to do financing (usually through the manufacturers financing division). However, as with all loans, you must qualify, and your rates will vary.

People also asked