Auto Car Loan
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Auto Car Loan Options

When you buy a new car, you have several auto car loan options from which to choose. Find out what they are here.

Buy the Car with Dealership Financing

Of all the auto car loan options, this is definitely the path of least resistance. Most people opt for dealership financing because they use the dealer as a one-stop shopping destination for their vehicle and their auto car loan. You can, without hassle, fill out a credit application and drive off in your new car. You can get a dealership auto car loan in the evenings or on weekends, when traditional lending institutions are closed. Be aware, though, that the dealership will charge you higher rates in exchange for this service. Very few people have the credit requisite to qualify for 0% financing, so that leaves the rest of us paying inflated interest rates. In fact, dealerships now regularly make more profit on the financing deal than they do on the actual sale of the vehicle. Dealerships will partner with a lender, who will quote them an interest rate based on your credit. The dealership will take this rate and inflate it to make a profit off of the auto car loan deal. Basically, when you add in the dealership middle man, you face higher rates and general inefficiency.

Leasing the Car

Regardless of whether you're applying for an auto car loan or a lease at the dealership, you will need to fill out a simple credit application. The dealer will look for leases for you that depend on your credit score and how long of a lease you want. If you choose to lease, experts recommend that you lease for a term of three years. The dealer will also ask you how much you would like to pay up-front. Financial experts generally recommend that you pay a small amount at the beginning of the lease. You can tell the dealer you would like to pay the drive-off fees only. The disadvantages of leasing compared to an auto car loan include restrictive mileage limits, the inability to build equity, and possible fees and penalties for wear and tear on the car.

Pay Cash for the Car with an Auto Car Loan

We know that almost no one can pay cash out-of-pocket for a new car, but this is not what we are suggesting. What we mean is you can pay in cash when you get an auto car loan online prior to buying your new car. Your auto car loan can give you the amount of the loan in cash, so all you have to do is write a check to the dealer for the car and drive away. This removes many complicating factors from the negotiation process: the down payment, the monthly payment, and the interest rate. In essence, the dealer is left with nothing with which to mask the true price of the vehicle, so you win. Negotiations are tremendously simplified with third-party auto car loans. Please read our financing problems and solutions page if you have any setbacks.