If you do not have time to try to find a car loan from a lender, or if you have really bad credit, you may still be able to buy a car. However, you will need to visit a car dealership that offers dealer financing. Dealer financing can be easy to get, no matter how bad your credit is, and here are a few things to understand about this.
The Two Options: Dealer Financing vs. Private Financing
There are two ways to get a loan to buy a car, and visiting a dealer is one option. If you get a loan from a dealer, the auto dealership you purchase the car from will find a loan for you. The other option is private financing, and this involves finding a lender yourself. You can do this by visiting your bank or credit union, or you could look for a loan online. Both options offer a way to buy a car with a loan.
Why Dealer Financing Is Often Easier
To find a loan yourself, you will need to gather up your financial documents and apply for a loan. You will then need to choose a car and arrange for the lender to pay the dealer. This can be a hassle, and it can be hard to find a loan if you have poor credit.
When you shop for a car with a dealer loan, it can be a lot easier to get a loan, even with bad credit. The dealership you visit will work hard to find you a loan, and there are reasons for this. First of all, the dealership makes money if you can find a loan to use to buy the car. The second reason is that the lender the dealership finds for you may offer a commission for finding someone to loan money to. Dealerships have connections to dozens of lenders, or possibly more, and that is another reason this is an easier option.
While there are always pros and cons to any decision you make, there really are no cons with choosing dealer financing if you have bad credit. With bad credit, you are likely going to pay a higher interest rate on your loan no matter where you get it, and it may be hard to find a lender on your own that would even offer to give you a loan.
Going to a dealership offers a way to quickly qualify for a loan to buy a car. If you have questions about this, visit a dealership near you.