There are a number of methods available in the market to do safe and convenient car finance. Be it a new model or a used one, financing the car makes it easy for the buyer to spend his/her expenses methodically rather than shedding all the savings at once. One of the best ways considered for easy auto finance is getting it done through the car dealership itself. This process is considered reliable and much more comfortable as one is financing the vehicle from the same place it is being bought; thus, requiring less enquiry, paperwork and time. It is just like a one-stop-shop for all the queries and a considerable number of prospective buyers are getting inclined towards this process currently.
It must be noted that the auto dealers themselves are not the loan providers but they work with a set of financial firms. Usually these firms are the ones, which have a tie-up with the manufacturer or works regularly with that specific dealership. New car dealers generally opt for the banks and firms, which have been authorised by the auto manufacturer. The dealers just work as a medium to get the loan approval quickly and provide the people with the financing options. They indulge in all the financial arrangements and make it convenient for the people who are actually in a bid to borrow the amount. The process works in the following ways:
- Usually all the dealerships have the offer of providing financing schemes with new cars as well as used models. When a person desires to purchase a car, the dealers make them aware of the current financing options available through them.
- A person can always negotiate about the interest rates, duration of loan and the amount; thus making the job more convenient for themselves. When all the process gets finalised, an individual just has to deposit all his paperwork regarding the automobile.
- The dealerships in turn pass the documents for verification to the concerned firms and corporate banks; thus, arranging for all the financing process. One might think that he/she is directly dealing with the authorised dealer for loan requirements but the actual amount is coming from the financial firms.
New as well as used car dealers indulge in this car financing process as they also have a requisite amount of commission fixed for them. There are a number of advantages and disadvantages of this easy financing. There is a convenience for the new buyers to get their vehicle financed at the same place with minimal efforts. This process can be done at weekends or even during the night as against other financing firms, which operate under a certain period of time. However, the cons related to this process are that the interest rates offered by the dealerships are at times competitive and not flexible as compared to other lenders. The dealers can also add up to the interest rates all by themselves just to increase their commissions. Therefore, it is always advised to not be in a hurry and take all the financing decisions after thorough research.
