Benefits of In-House Car Financing
Buying a car should be a fun and exciting experience. Normally, this is the second most expensive purchase a person makes in his or her lifetime. But, the experience isn’t always a stress free experience. One way of helping on the stress is having your financing done in-house. There are benefits to having the car dealership you purchase your automobile from to do the financing. One example is that the dealership buys car loans in bulk.. Also, relationships can be built with the dealership when payments are mad on time the dealership will remember this and could make a better deal with you in the future.
If the car dealership buys automobile loans in bulk you are more than likely able to work with them to obtain the best deal. Meaning, by compromising you will receive a better interest rate. If the dealership wants to sell the vehicle then a deal can be made to benefit you. If you were purchasing from a person down the street this deal could not be made. Also, by taking this avenue of purchasing a car the dealership may send your payment status to the credit bureau. If you have bad credit this will help raise your credit score depending on your willingness to pay your bills on time. A good credit score is a score of 600 points or higher. Having a higher score will help to bargain with the automobile dealership for a better interest rate. Even if you don’t have the best credit score taking an in-house installment plan helps you achieve your goal of owning a car. The interest rate may be high, but the dealership will work with you. This type of installment plan is called subprime credit.
Another great thing about having the dealership finance your car is that there isn’t all the wait time. If the dealership has already bought a loan they could give you, then you don’t have to wait on them to call numerous lenders and wait for an acceptance from the lender. I know from experience this is the worst and most stressful time in purchasing a car. A note to remember is accepting and in-house installment plan or buying on subprime credit can help build up your credit score.