Should I have my Finance Lined Up?

Buying Consumers want to know if they should get their own Auto Loan from a Lender before they go Car Shopping!

And the answer is yes! Definetely. Most people do not understand that getting your Auto Finance lined up beforehand can save you lots of money. Remember : The Dealership is not the only place where you can get your Car Financing. Now if you do not know what type of financing you need, please visit our Different Types of Finance Options page first in order to figure out what your options are. Prime or Sub-prime Financing: You can get an Auto Loan from a Bank, Credit union or another Financial Institution and have these loans approved before you ever hit the showroom floor. These sources of Automotive Financing will usually offer the lowest rates you’ll find. Credit Unions generally offer lower Interest Rates than banks. Online lenders. In recent years, On-line Finance companies such as Capital One, eLoan, Up2Drive, and MyAutoLoan.com have sprung up, offering very attractive rates and contract lengths. These loans can be handled entirely on the Web, putting a buyer’s check in your hand in just a few days that can be used at a Dealership or for a Private-Party Purchase. There are many On-line Auto Subprime Lenders available to choose from. The only downside to this is you might have to go to one of their Preferred Dealerships. 2nd Chance Financing: There are many Online Lenders available that can help you with your Auto Loan like CarsDirect Auto Loans and AutoCreditFinders.com. Family help. If Financing is a stretch, your family may loan you money or Co-sign for a loan. If they do, make sure all parties are fully aware of every detail regarding the loan and the possibilities – should circumstances change or things go wrong. Dealership Auto Loan. As a general rule, Dealership Financing will cost you more, but you may find exceptions. And those zero-percent deals often cost more than you realize because sometimes they require “dealer participation,” which is double-speak for the Dealer having to subsidize the below-norm Financing. So where is the Dealer likely to recoup that cost? By raising the price of the vehicle, of course. The best way to know what’s what is to first negotiate the price of the vehicle as though you’re paying cash or Outside Financing. Then tell the dealer what your Bank or Credit Union’s Rates are and ask if they can beat it.