Convienient Financing Options For Your Next Car Purchase

Not many people have sufficient on-hand resources to pay cash for a new/used car purchase. Most people HAVE to finance at least a major portion (about 80%) of any such acquisition. Most people just assume that financing through the car dealership is the simplest, easiest and most convenient way to goand most people pay more than they need to because of that assumption!

Car dealerships rarely provide direct financing; i.e., they partner with a lending institution which provides funding to qualified buyers who apply for loans at car dealership offices. The lending institution accepts all the involved risk, while in most cases the dealerships accept a flat fee commission, a percentage of the total loan, and/or a bonus for each loan placement from their lending partner. This cost is paid for by the buyer through a higher loan rate. It might be simpler and easier to file for a loan at the car dealership, but please dont assume that it doesnt cost you for that convenience. In a small number of case, like at ThatsMyNewCar.com, financing is provided, however the dealer does not receive any fee, percentage or bonus for placing the loan. The service is provided to make the car buying experience better and more convenient for the customer.

Banks and credit unions offer direct financing to car buyers, usually at rates better than those they can offer through any partner car dealershipsthis is because they have no fees to pay for a middleman. Deal directly with a lending institution and you can save money on your new/used car purchase. If you have a savings/checking account with a bank or credit union, they are much more likely to provide you with a car loan than any lending institution for which you are not already a customer, and youre more likely to get a better rate or more convenient terms (or both) from them too. Most even offer lower rates if you agree to have payments automatically deducted from your accountno checks to write, no envelopes to address, and no stamps to send them in. Now that is a convenience which not only doesnt cost you anything, it usually saves both time and money!

Try to have your financing issues addressed before you even go to a car dealership. Banks and credit unions will help you determine how much you can afford to pay, which should provide more confidence and less anxiety for when you actually go to a dealership. With loan approval issues already addressed before you set foot on a lot, if you see one that just screams Thats My New Car to you, youll be in a position to close the deal right then and there, and to drive it home without further delay. Now that could be a convenience derived from adequate preparation and forethought!

Tom Carey is the owner of http://www.ThatsMyNewCar.com. A Pennsylvania used car dealership in Norristown that specializes in giving the public proxy access to exclusive dealer-only car auctions, saving each customer thousands of dollars.Annette Blog5741
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