No matter what your credit situation looks like, when you need a car, you need a car. Obtaining financing for your new car can seem daunting, but you do have two options: you can either obtain in-house financing from a KC Buick dealership or get a loan for a vehicle at a lending institution such as a bank or credit union. Here are some of the pros and cons of doing in-house financing through the Buick dealership that you should think about before applying for financing anywhere. |
Pro: If You Have No Other Options In-house financing is a great deal if you have no other options as far as obtaining credit. For example, if you go into a lending institution such as a bank or credit union with no credit history and ask for a car loan, it is likely you will be denied. The same is true if you have a bankruptcy or recent repossession on your credit report. In-house financing might be your best and only option at this point.
Con: You May Pay More in Interest Because loans that are financed in-house are often designed for those with low or no credit to help them rebuild credit or help them out when there are no other options, you might pay more in interest than you would otherwise. However, this is really a moot point when you are out of a car and need to get one fast. One thing that you can do to offset the higher interest is pay more towards your principal balance each month to make up for it.
Pro: Helps You Build or Rebuild Credit As mentioned above, if you have poor credit, no credit, or a bankruptcy or repossession on your credit report, then in-house financing might be your only option. The good news is that you will be able to qualify quicker for things like a house, newer cars, and loans that you need to pay off debt when you finance your vehicle purchase at the dealership. You do this by making your payments on time and in full every month to prove your credit worthiness.
Con: Pay for Your Car Longer If you are obtaining financing through the dealership, then it may be possible that you have a longer loan term and a lower payment. This might seem really great but in reality, you are likely paying more towards interest than you would with a slightly higher payment and shorter payment term. In some cases, auto loans are being stretched out over 6 years and very little of the payments over those 6 years is going towards the actual balance of the vehicle.
Pro: Highly Trusted Method Ultimately, in-house financing through a dealership is considered one of the most highly regarded and trusted financing options that you can have, as long as you are able to pay your auto loan payments every month in full and on time. Dealership loans are often looked at more favorably than loans through other lending institutions, so this can mean good things for you and your credit score as well.
Con: Pay More for Your Car Because you might be paying more to qualify for your auto loan, the price of the car might be somewhat more than the car is worth. This is bad news for you because it means you are underwater on your loan as soon as you sign on the dotted line, owing more than the car is worth. Make sure when you are discussing your financing options with the professionals at the dealership that you fully understand through your own research what the car is worth before buying it.
While there are a number of pros and cons to getting financing through a KC buick dealership, inhouse financing is a smart move that could save you a lot of time, money, and hassle if you approach it in the right way.
Robert Brogden Buick GMC http://www.robertbrogden.com/ in Olathe serves Kansas City and St. Joseph, MO GMC and kc buick customers with new cars, used cars, parts, and service.
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