Why Should I Finance My Car or Truck Through My Dealer?

August 5th, 2023 by

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Introduction

Dealer arranged financing is becoming an increasingly popular option for consumers as it not only reduces the waiting time to receive an approval, but it gives you direct access to several lenders who may offer rates and programs that can be tailored for your specific needs. Having options is rarely a bad thing, so let’s look at some reasons why you should consider reaching out to your local dealer:

I. Convenience and Streamlined Process

Financing a vehicle through your local dealer allows for a convenient one-stop shop experience where in the span of less than an hour you can have hands-on experience with your vehicle of interest and know what to expect for your loan term, monthly payments, and more. Nothing is more valuable than your time, and dealers work hard to make sure you have all the necessary tools and components at your disposal to make an informed decision with little to no delay in getting answers to your questions. Each dealership has financial specialists that have close relationships with representatives from preferred lenders. With this direct line of communication, a dealership can compile all the necessary paperwork in a matter of moments, satisfying the proper documentational needs of the dealer itself and your financial institution. They will make sure things are in order and guide you through your contract details and signatures in hopes that from that moment on, your only care is to better familiarize yourself with your new vehicle. Sometimes it’s easy to forget that banks and credit unions are businesses too. When it comes to finding the right loan, remember that working closely with your trusted dealer can help leverage negotiations with lenders. This has the potential to give you much better results than you could have otherwise expected. Dealers are a great asset to banks and credit unions when you consider just how much business they pass forward. Don’t be shy! As a customer, you can tap into that relationship and use it to your benefit.

II. Access to Competitive Financing Options

When you arrange financing through your dealer, you get access to many lenders you wouldn’t have known about otherwise. Let’s look at a few reasons you should tap into this network of lenders:

• Some lenders have terms that go beyond what their competitors offer.

• Some lenders offer lower interest rates compared to their competitors.

• Some lenders work well with bad credit.

• Some lenders will allow you financing for vehicles that other lenders otherwise would refuse.

• Some lenders require very little down payment.

Every customer’s needs vary based on their lifestyle and future goals. It’s important to have the ability to choose the lender that helps accommodate for these things, and your dealer has just the right contacts to make it happen. Let’s not forget that dealerships (especially franchise and name brand dealers) have access to programs and incentives that are otherwise foreign to private and smaller automotive sellers. Trade-in incentives, cashback options, down payment assistance, discounts and rebates, and the occasional 0% interest to name a few. These opportunities alone are reason enough to consider moving towards dealer arranged financing.

III. Potential for Better Interest Rates

Yes, we said it before, but it’s too good to not mention again. Dealers have strong relationships with lenders, and you should tap into that. The relationships they have carefully forged could result in them calling in a favor to get you a lower interest rate, and in some rare instances, they can enroll you in a payment deferral program where you may not have to make your payment for a month or more! Now that doesn’t sound so bad, does it?

Some financial institutions have policies in place that allow them to rate match when a dealer presents them with a better offer. Imagine getting the perfect interest rate and loan term because the dealer knew the right places to get offers from and knew what place to finalize the loan with. It’s so wrong, but it’s so right!

IV. Additional Financing Services

There are more concerns to purchasing a vehicle than just getting approved. With additional coverages offered through your dealer, you can have peace of mind knowing that for a few extra dollars a month, your vehicle could be covered under warranty against mechanical failure, covered against paint damage and broken windshields, and much more. With the increase of motorists on the road comes an increase in accident risk. This makes coverage like Gap insurance a must. Again, for a few extra dollars on your monthly payment, if your vehicle is totaled in an accident, the insurance company will cover the cost fulfilling your loan past what the appraised value is by your car insurance company. Avoid this coverage if you like to pay monthly for things you unexpectedly can’t use anymore.

In addition, there are great trade-in advantages to consider when arranging your financing for a new vehicle. Aside from potential cash incentives that could reduce the total cost of your loan, you also have the advantage of tax savings which will further reduce the overall finance amount, resulting in a lower monthly payment. This option is only available through a licensed dealer.

V. Access to Expert Advice and Support

The information offered by the dealer’s financial specialist will bring greater peace of mind and guide you to not only make the right purchase, but a smart purchase. You will have access to a team of staff members with knowledge and expertise in the financing process who will be able to answer all your questions. Some credit profiles can be challenging to work with, and it’s important to utilize a well-trained team to communicate with the right lenders to fill any concerns and gaps that might be preventing you from getting financing. These teams have years of experience who can offer potential solutions for those with less-than-perfect credit. The party doesn’t stop just because you finalized your loan and ran off to show off your new vehicle to your friends. With the new relationship you’ve formed with your dealer, they’ll work closely to make sure you have adequate post-purchase support. They’ll help schedule your routine maintenance, make you aware of any brand specific recalls, and possibly even help arrange refinancing options later down the road. Not to mention you will always have a friend in your back pocket should any questions or concerns come to mind.

Conclusion

Let’s summarize our key points of why you should consider working closely with your dealer to arrange financing for your new vehicle:

1. They help create a convenient and streamlined process

2. You will have access to a wider array of competitive financing options

3. you will gain the potential for better interest rates

4. You will have access to additional financing services, bringing greater peace of mind

5. You will have access to expert advice and support throughout your entire ownership experience

There are a lot of things to consider when searching for the right vehicle. Our hope is that by eliminating the need to run around to banks and dealerships, you can spend more time making informed decisions and bonding with your new vehicle. As a dealer, we want this experience to be as pleasant and painless as possible. We strive to build a level of trust that will make us your number one contact for all your automotive needs!

 

Ready to take the next step? Click here to begin your approval process!

Link to Financing Application

About National Auto Plaza:

National Auto Plaza proudly serves the citizens of Salt Lake County with an elite sales team and a parts and service department unmatched in the industry! Over the past several years they have extended their reach beyond the Sandy and Draper vicinity up to the residents of West Valley, West Jordan, Tooele, Herriman, and Salt Lake City. Even further, the reputation of National Auto Plaza has brought business over state lines, where customers are now traveling from Colorado, Nevada, Idaho, and Wyoming to purchase from their selection of quality-built lifted diesel trucks! If you’re looking for the perfect car, truck, or SUV this year, National Auto Plaza will be your last stop before you hit the road!

Posted in Finance