Buying a car loan at the dealership can be interesting because it simplifies the process but pay attention to certain pitfalls. Explanations.
Auto loan in concession: principle and functioning
Car dealerships are multiplying services to attract new customers but also to retain them, so they rely heavily on additional services that can trigger a sale, such as financing. Today, we are no longer forced to go to the banker to obtain credit, we can go directly through the car dealership to request financing and buy the vehicle.
Concessions usually have two solutions at hand, they can rely on the builder’s financing subsidiaries, ie the brands have their own credit institution that offers financing offers. Concessionaires also work with credit institutions specializing in intermediation financing, which are usually the big names in consumer lending.
What types of auto loans are offered in concession?
There are essentially two types of financing offered in car dealership, namely the classic car loan, it is a consumer credit, the amount of which can be up to 75,000 USD. There is also the leasing, that is to say the leasing offered via the lease with option to purchase, it is also a consumer credit but based on a lease. Both offers are conceivable and can be subscribed with a seller, the latter carries out a quick study of solvency before sending the file to his financial partner.
To obtain a car loan or car leasing, it is necessary to define the model, the finish and the equipment first. The seller needs to know the total amount of the vehicle, that is to say its selling price including all taxes, taking into account the different costs to file the file. The instruction of the file will be done only on completeness of the elements, it is therefore necessary to have an idea of the model of car and the desired equipment before asking a salesman in concession.
Advantages and disadvantages of car loan in concession
The main advantage for a motorist is to be able to enjoy a complete package, that is to say the purchase and payment of the car without having to move. Vendors usually have a good knowledge of financial products and will favor the sale, so they will make sure the file is feasible to facilitate the purchase of the vehicle. Another advantage is that offers of loans can give rise to discounts on the car rate, promotional offers that can not be obtained in normal times.
Although obtaining financing is less restrictive, it is not offered under the best conditions. By privileging the concession for its financing, one usually fails to compare rates and terms of repayment, which one could negotiate can be more easily in a credit institution. Another point, if the sellers know the financial products well, they are not for all that bank advisers, it happens that errors are made on the appreciation of a file.