Frequently Asked Car Loan Questions
Used Car Buying Advice Goals
Can you recognize a truly good deal? Do you know how to detect major issues with a car? How can you know that a car salesman is honest? These are just some of the questions we’re answering on Advice Center.
At Rapid Car Loans we strive to make used car buying easy for everyone. That means making things stress free for shoppers and giving them answers before they ask questions.
Get your answers to questions you never knew you had about used car buying!
What Are The Benefits to In-House Financing?
1. Personal experience
Without the involvement of a third-party, the business is kept between you and the dealer. This makes for a smooth business transaction. This model also helps establish a relationship with the dealership. You are not just going to be purchasing the car and driving away to never see the dealer again. Instead, your relationship will continue, and when it comes to cars and finances, you want to be in an ongoing relationship that you can trust.
2. No credit discrimination
In-house financing means you and the dealer will determine a financial arrangement to ensure you can make your monthly payments. While credit checks are taken into consideration, there is much more taken into account than simply your credit score. So even if you have bad credit, the experience is so personal that it is likely you can come to an arrangement with the dealer and drive away from the lot with a car.
3. Realistic approach
If a third-party lender were to be involved, then you would go to the lot and select a car of your choosing, and then figure out with the dealer how to pay for it. When it comes to in-house financing, you and the dealer will establish what you can afford before you set out to pick a car. By having this realistic approach to the purchasing process, you won’t be able to get ahead of yourself. This approach will allow you to choose a car that you can absolutely afford and won’t have trouble making payments on as the months go by.
4. More flexibility
Just because you have a price range doesn’t mean the dealer won’t be accommodating.
In-house financing dealerships receive many applications, which allows them to be more flexible in their approach. By default, this provides you some flexibility in your selection and monthly payment amount. Since the lot doesn’t have to negotiate with banks, it opens the door for more financing possibilities. You aren’t stuck in a corner
with limited options with an in-house financing model. In fact you have more choices than you imagined.
5. Credit reporting
You should also ask your dealership if they report to credit bureaus. There are three credit bureaus to which they will report – Equifax, Experian, and TransUnion.
In-house financing has many affiliated benefits and can allow you to get the car you want, putting you in a position in which you can afford the monthly payments, all while helping to boost your credit score. Talk to a dealer that specializes in-house financing and how you can drive away with that car you have had your eye on.
Common Questions To Ask Dealers About Your Bad Credit Car Loan
A bad credit score won?t necessarily cut you out of the auto loan process. You can still qualify for a loan and buy a car with poor credit; but the payments, interest rate and terms will vary.
Before you walk into the dealer, arm yourself with a list of questions to ask about your bad credit auto loan.
What is the minimum down payment?
Just because a buyer needs bad credit auto financing doesn’t always mean they?ll need a high down payment. Minimum down payments will vary depending on your dealer and what type of bad credit auto loan you need.
How high is the interest rate?
Before signing your loan, ask dealers about the type of interest rate attached to your bad credit auto loan. Remember that your interest rate on a bad credit auto loan affects your monthly payment, as well as the overall amount you’ll ultimately pay.
What are the terms?
Auto loans can vary in length for buyers with bad credit auto financing. The specific terms will depend on your dealer and any negotiations that take place over your bad credit auto loan financing.
What kind of car will I qualify for?
It’s not uncommon to hear stories about people with bad credit auto financing being shown a different selection of cars than other buyers. Ask in advance if you will have any vehicle restrictions and what type of car you can expect to qualify for.
Rapid Car Loans is located in Windsor, Ontario and also serves Leamington, Tecumseh, Chatham, Sarnia, Kingsville, Lakeshore, Petrolia, Dresden, London and surrounding areas.