Why Finance With a Dealership Versus a Bank?Jan 26th, 2022
Buying a vehicle can bring up all kinds of feelings in a person. When it comes to finding financing to pay for that purchase, people often have even stronger feelings—mostly stress. Everyone at Surgenor Auto Credit wants to help make the financing process as easy and as stress free as possible. Not many customers pay cash for a vehicle, which means they will need to decide if they want to find a loan through a bank or work directly with the financing professionals at the dealership. Let’s take a look at some of the key advantages of getting your car loan through us.
Advantages of Financing Through a Dealership
To be sure, there are several great reasons to work with the financing professionals at Surgenor Auto Credit—flexibility being the top reason. There is an adage in the financial world that goes, the only thing worse than bad credit is no credit. Our team can work with people in almost any financial situation to find them affordable financing options. Typically, our in-house interest rates fall between eight and 13 percent. There are all kinds of reasons a customer’s credit has taken a hit, including divorce, bankruptcy or an overload of bad debt. We can work with people in all of these situations, and more.
Additional Reasons to Get a Loan With Us:
- Customers may have more room to negotiate sale and loan terms
- Greater flexibility for buyers with less-than-perfect credit situations
- Providing a larger down payment can drastically improve financing terms
How Much Should Your Down Payment Be?
A down payment is a critical element of the vehicle buying process. A down payment is directly applied to the final sale price of the vehicle, leaving the customer with less to finance. There are no hard and fast rules about how large a down payment should be. However, having between 10 and 20 percent of the sale price to put down will make a big difference.
Can a Car Loan Rebuild Your Credit?
The Canadian government estimates that as many as 1 in 6 of its citizens will declare bankruptcy, making it much more common than someone might believe. Good people fall on hard times and there should be no shame in asking for help. Rebuilding a credit profile is crucial after a bankruptcy or other financial hardship. A car loan could be the remedy. Financial experts agree that a person who is able to obtain a loan after a bankruptcy, making consistent on-time payments for six to 12 months can make a substantial difference. Additionally, after that series of on-time payments, a person may be able to refinance their loan and obtain more favourable terms or interest rates.