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Financing an Auto Loan Through a Dealership in Hamilton

Financing an Auto Loan Through a Dealership in Hamilton

Financing an Auto Loan Through a Dealership in Hamilton

 

When it comes to financing your next car, there are mainly 2 different routes you could take. financing through a dealership, or financing through your bank. So, how could you know which route to take?

 

Everyone’s situation is different. There are certain times where you would choose one over the other, this article will discuss what is involved in financing through a bank. We have also written about financing through a bank which you can find Here.

 

Financing your Auto Loan Through a Dealership

 

One of the main differences between financing your auto loan through a bank and a dealership is that with a dealership, you usually tend to decide on the car you want to purchase, THEN you apply through the dealership.

 

The dealer will then send your application to either their own finance team or an external source (such as a bank!). Dealerships such as ours also have quick ways for customers to apply for a quick pre approval before coming into the store.

 

The downside with going through the process of a dealership is that you will likely have to wait for a couple of weeks to get an official approval. To go along with this, if your application is denied, you will have wasted your time.

 

On the upside however, Financing through a dealership will often provide the customer with a great deal. This is because the dealership will be far more enthusiastic about you buying one of their cars. As opposed to a bank (such as 0% financing or a manufacturer’s cash back rebate).

 

Similarities

 

Another thing to consider with a dealership is that it is quite similar to a bank. The difference is that they are essentially doing the work for you to find you the best deal. This can be great because they could find just that.

 

On the other hand, it takes away finance options that may otherwise be available if you were to use a bank. Plus, the dealer may try to negotiate a higher interest rate as compensation for them handling the financing.

 

Still, those interest rates may still be lower than a bank which is why research is extremely important. As a car dealership chain, you would expect us to say we are the best option. However, Car Nation Canada is dedicated to delivering exceptional service, and will always be honest about your options. Even if it means we lose a little business!

 

Credit Score

 

When it comes to poor credit score, dealerships are typically are much less apprehensive. This is not to say that a bad credit score makes it impossible to get a car loan from a bank, but in comparison the loan you get from a dealership will generally be preferable. (a credit union may also be a good option for you).

 

Again, financing through a dealership may not be the best option for you, so I encourage you to read our other article here to find more information on bank financing.

 

When you’re ready for a car loan, get in touch with the Hamilton car loan experts at Northway Ford for great deals on auto finance.

 

Thank you for reading. If you are looking for your next car or would like to be updated when we release more articles like this, be sure to connect with us on our Facebook, Twitter, Instagram, or LinkedIn pages!

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