Have you been thinking about buying a new car? If so, it is essential to know the benefits of getting outside financing for your purchase. In this blog post, we will explore some of the hidden benefits of having outside financing on a car purchase. You’ll find out why going through a bank or financial institution can be beneficial in more ways than just the interest rates on loans.
1) You Can Get a Better Interest Rate than the Dealer
Many dealers and lenders will tell you that they have the best interest rates for financing. However, it is not always true. Ask your friends and family members for recommendations on outside financing options to understand what types of interest rates are out there. You may be surprised by some of the great offers you get from banks and other institutions. Getting outside financing can help you get a lower interest rate, which means you will be paying less for your monthly car payments!
2) You’ll Get a Better Deal on Insurance
Many car buyers do not realize that outside financing options for their car purchase can be extended to cover other costs. Since you’re already going through an outside lender, they may offer insurance to you at a discounted rate depending on the type of loan and interest rates that have been negotiated.
3) You’ll Be Able to Get a Longer Loan Term
If you are looking at buying a car with a high sticker price, it may not be possible for you to pay for the car in full with cash today. By going through outside financing options, you can get longer loan terms which mean smaller payments each month. This allows you to stretch your dollar for a longer period and pay off the car faster as well.
4) You’ll Get Better Protection from Interest Rate Swings
Interest rates can be a big concern for those considering buying a car. However, those who look into outside financing options have an advantage over those who just finance their loan through the dealer or bank. With outside financing, you will have an interest rate that is fixed for a certain period. If the rates drop, then your rate automatically becomes lower as well. Also, you will not be subject to volatility in the market and will not have to worry about your rate changing on you every few months.
5) You Can Choose the Car You Want
If you’re like most car buyers, you’ve likely been looking at different cars and trying to figure out what type of vehicle works best for you. With most outside financing options, you can choose exactly which car you want, and they’ll come to you with a great offer for it!
6) You Can Have More Payment Options
Much like having a longer-term on your payment plan, those who go through an outside finance company also have more options when it comes to paying for their car. Many outside finance companies offer payment plans that can be paid off early without a penalty which is not always the case with a finance company or dealer.
In conclusion, if you’re thinking about buying a new car, it is essential to educate yourself on how financing your purchase works and what benefits come from using the different methods available.