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Financial Solutions: Financing For Automotive Dealers

by Amy Nutt
Automotive financing is also known as self-financing. When you purchase a new or expensive car, you will most likely have to acquire financing. There are number of ways to secure affordable automotive financing. The key to getting a good auto loan is to know all of your options. The most familiar financial products used for automotive financing is personal car loans and financial plans offered by car dealerships. In most of these cases, you will not save much money because they do not specialize in loans therefore they do not always have the ability to get a good deal for you. They also often work with lenders and get a share of the percentage that the lender gets when they provide the loan.

A recent study by J.D. Power and Associates shows -that more consumers are obtaining financing from non-dealer sources such as banks, credit unions, and online lenders. (continued below)

Financial Solutions: Financing For Automotive Dealers

More banks, credit unions, and independent lenders are becoming involved in the auto financing industry. This means that there is more competition for your business. They are offering more affordable interest rates, lower down payments, and flexible repayment plans.

When planning to finance your car purchase, there a number of factors that you have to consider. Assess your financial state of affairs and establish how much you can afford to pay. There are a number of internet sites that offer payment calculators to determine how much you can afford to pay. Make sure that you obtain a copy of your credit report so you can correct any errors before applying for a loan. Lenders use your credit rating to determine loan eligibility and the rate they will offer. Compare interest rates and financing terms from a number of different lenders. There are online sites that provide a tool to receive several quotes from several different lenders. When you have chosen the right car for you, look at all the additional features that come with it. Determine if you require all of the features because most additional features will increase the cost of the vehicle. As well, make sure you understand the difference between purchasing and leasing a car. It is also recommended that you research pricing information, features and options, colors, specifications, safety and quality ratings.

When you negotiate the final purchase of the vehicle, negotiate the price not the monthly payments. The more monthly payments you make, the more you will pay overall for the car. The financing terms should be negotiated as well. Read the contract carefully before you sign it.

It is important to remember that the lender has a lien on the vehicle so if you fail to make payments, your car will be repossessed. If you have difficulty making your monthly payments, try to work out a modified repayment schedule. As well, you should be aware that the larger the down payment you make, the lower your interest rates will be.

When you seek auto financing, it is important to know what options are available so you can make the best deal.

About the Author
Global Financial institution offering commercial and personal banking services including online banking, credit card, loans, Bahamas finance management and more. Visit Trinidad and Tobago money.