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Its had many benefit for getting finance from a car dealer. Dealership loans are pretty common. In the past, a dealership car loan was one of the only ways to finance a new car. Now times have certainly got changed. One thing is absolutely certain, a dealership loan is convenient. While you sit there and fill out the papers for the car of your dreams that you are about to purchase, you may as well just fill out papers for a loan to finance that very car. Yes, dealership loans really are quite simple, however, sometimes they are not in your best interest. Mainly you get a vast choice to purchase any vehicle though them.


Yes you should get financing through a car dealer as they can provide you loan at a low interest rates. You will get a higher interest if you finance through a bank. So it would be advisable to finance through a dealer.

AnswerAuto 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 auto 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 auto loan.

When negotiating auto financing, 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 auto 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 auto financing 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 auto 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.

AnswerOne thing most people don't know about dealers is that they can actually add their own points to a car loan. Money made from these points are then kicked back to the car dealer. Usually this is only two to three points but that adds up to a few thousand dollars depending on the size of the loan. This is a multi-billion dollar scam industry wide and they never have to tell you they are doing it as long as the total interest rate percentage is displayed on the lending form.

One way to know that the dealer is trying to add points is when they tell you that you cannot get a lower interest loan because there is something bad on your credit report. It may be fictious or outdated or a flat out lie. The point is to get to you to agree to a higher interest loan. This happened to my dad when the dealer used a bankruptcy that was 12 years old to raise his interest rate.

In short the dealer often makes more from adding points than from the actual markup of the car. With this kind of money they pull out all the stops to get you to agree to a higher loan and it is very hard to force them not too.

Never, ever get a loan through a dealership


Why can't a dealership mark up the rate and make a profit? Are we not allowed in this great country of ours to operate a business and make a profit? With most customers only willing to pay invoice or cost on a vehicle, where else can we make a profit. Anyway most states put a cap on the amount of rate a dealership can make usually 2 to 2 1/2 percent. If a consumer would pay the Manufacturers Suggested Retail Price or MSRP then maybe we wouldn't have to find alternate means of generating a profit that supports our business and employees. People that have had a bad car buying experience at a dealership generally have brought it on themselves because of their lack of knowledge and understanding. Lets reverse it and put it in your shoes, if you invested $25,000 of your own money into something with the sole purpose of reselling it at a profit, how much would you expect to make? Is a $500 profit a good return on your investment? is $1,000?? $2,000?? "Educate before you negotiate" and your car buying experience will be a whole lot easier and headache free.

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โˆ™ 2011-09-13 14:06:55
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Q: Should you get financing through the car dealer?
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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.

How do you get financing for a car?

the dealera banka credit union

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.

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 yes they can

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.

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".

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 is it possible to get car loan financing?

There are a number of places that offer car loan financing. Depending on an individual's credit score it can be done through a bank or through a car lot that offers buy here, pay here financing.

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.

Where can one get low interest financing for a leased car?

One can get low interest financing for leasing a car either from the car dealer or the bank. The bank is likely to have lower interest rates and will accept the car as collateral for the loan.

Will a car dealer give you a better price on a car if you finance with the dealer rather than pay cash?

Nooo. In the car business "cash is king". When you finance a car the dealer loses profit to loan fees. Or if you are talking about financing through the dealership itself, buy here pay here, then it's still no. They would rather see all of the money up front.

After signing a car contract can a dealer say the bank did not approve you?

Yes, the contract only gives the dealer the authorization to seek financing based on the terms of the signed contract. Read it closely to include the fine print. If for some reason the financing falls through the contract usually becomes null and void.

How does the availability of consumer credit benefit the car dealer from whom you are buying the car?

Well, for starters it allows people to buy the car. Secondly, a bank contracted with the dealer - that is to say the dealer handles the financing - will pay the dealer anywhere from a $100 "flat" to up to 2% APR on the loan. They will have to pay back the difference to the bank if you pay off the the loan early. If you source your own loan, then it doesn't benifit the dealer. Since they are major sources of lending, dealers will often have cheaper sources of financing than is available to the average consumer. When this is the case, it is cheaper for you to go through the dealer regardless of what the dealer is getting paid.

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.

Your financing fell through on a used car can you return it?

You will be forced to return the car if the financing did not go through. Depending on how long you have had the car, how many miles you have put on it, and what your contract says, you may have to pay a small amount for its use.

How do i finance a car?

Find the car you want, then apply for a loan w/ financing institution..

What are the difference between direct finance and indirect finace?

Indirect Financing: Like the name implies, indirect financing occurs when you go through another institution to secure your loan. In the auto industry, indirect financing entails working through the dealer to finance the purchase. The process is usually obtaining dealer financing, as the dealer does the loan up front and then sells it to a third party lender.Direct Financing: Instead of going through the middlemen to secure the money you need to make your purchase, direct financing allows you to work directly with lenders to secure the best terms and interest rate possible. Once you are approved for a loan through the lender they will give you parameters to stay within by use of a pre approval or even a voucher to pay for your purchase, allowing you to use the money you need to finance your new car at any dealership of your choice as if you where a cash buyer.

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.

Credit score in relation to financing a car?

You can finance a car by either contacting a bank and getting a loan through them or by getting a loan directly through the car dealer that you will be purchasing the car from. The benefits of a good credit score include better interest rates, lower payments and make it easier for you to obtain a loan.

Can you return a car you bought 3 days ago to the dealer the financing has not gone through yet it is in the state of wv?

No the dealership is under no obligation to allow a consumer to return the car. Once the contract is signed the car has a new owner and belongs to the buyer.

Where can i get a direct line loan?

Have you tried the dealer selling the car to you ? Often the dealers will give you the best financing you can find. If you are going to buy from an individual, then you might want to compare costs of financing through either your bank or some of the websites that specialize in direct loans.

Can you pay off the car at the dealership you bought it from?

The answer depends on who loaned you the money to buy the car. The answer is yes if the dealer does his own financing. I think most dealers arrange financing with a bank or loan company. If that is the case, you make you payments to them.

Can someone drive to surrender a car to the dealer?

The surrender will depend on who holds the loan on the vehicle. If the dealer has in house financing then an agreement could be made to give the car back. If the loan is through another company, then a deal must be made to give the car to them. They could let you drop it off at a branch, or require someone to pick it up from you.