How do you afford a new car? That is the question that plagues many people when it comes time to put their money down. Unfortunately, most people do not have the necessary funds in their bank account to actually pay for the vehicle of their dreams. This is where automotive financing comes into play. If you can’t afford a vehicle yourself right now, a dealership or bank can step in to give you the cash up front, knowing you will pay it back later.
At least, that is the basic idea on paper. In reality, automotive financing is one of the most complicated aspects to buying a new vehicle. The main issue that comes with finding the right auto loan is the application process. If all dealerships and banks were trusting, there would be no issue in securing a loan in a split second. Unfortunately, loan providers have to be guarded about who they work with for financing. If an applicant does not look like they will be able to pay the loan back, it can result in lost funds for the financing provider.
This is what makes the automotive loan application process so lengthy. By making sure everything is in order with an applicant’s financial history, a provider can increase the chance of getting their money back and then some with interest. A good financial provider can make it easy to find the right loan that will meet your desired terms and limits for the car you want. The application process does not even need to be lengthy and complicated.
The trick is knowing how to find the right loan provider with the right approach. Here is a look at Buy Here Pay Here.
The Old Way Of Finding A Loan
Automotive loans have been around for quite some time. Almost since the beginning of the automotive industry, dealerships and manufacturers have realized that expensive vehicles are not everyone’s cup of tea in terms of affordability. Since the industry needs sales to survive, the idea of financing was born.
In the old days, true financing for an automotive purchase was done at a financial institution like a bank or credit union. This made sense at first. Why go somewhere else when you can use the same place you trust to handle all of your other money-related matters? If a bank can handle keeping your money safe, surely, they can give you a great deal on financial help.
Unfortunately, this is not always as simple as it first sounds. The process of finding a traditional auto loan at a bank is complicated. A single application usually takes a long time to fill out and send in so the bank can determine if you are a good candidate or not. More than that, finding multiple loan options is more difficult since you have to fill out a separate application for each institute you check out. If you want to find different options to choose the best loan terms, you will need to be prepared for a lot of work ahead of time.
The Buy Here Pay Here Approach
If you want a different loan application experience, the Buy Here Pay Here approach will give you more time to look at the different loan options instead of endlessly filling out application after application. This is because this approach uses a one-stop-shop philosophy to the application process. Instead of having to check around at different banks and credit unions to find your next auto loan, you can do that all right from the dealership itself.
Buy Here Pay Here simply means that you fill out an application at the dealership you want to purchase the vehicle of your dreams at. Using a dedicated financing center, most dealerships are able to help their customers fill out the necessary information, perform the required credit checks, and review their financing options. If a dealership does not offer a loan of their own, they will usually have some kind of a provider network to send the application out for responses.
The benefit of this approach is more time to consider your options. One application can lead to several different options you can compare to each other to see which offers the best terms and conditions. The convenience you will experience is hard to ignore. Your credit score, for example, will benefit from a single application that leads to multiple banks and credit unions pulling the score all at once.
This is because a credit score can be affected by the number of hard pulls over time. More pulls will typically lower a score in a short amount of time. This time frame is usually around two weeks or so. If many banks and credit unions pull the score nearly all at once, the credit bureau will take the fact that you are applying for a loan into account. As a result, your credit score will remain less affected or untouched completely.
One final benefit to this approach is the help you can expect to receive when it comes to deciding on your financing solution. Auto loans are confusing to most people. The jargon and guidelines that many banks put into their legal contracts alone can make one’s head spin without a law degree in hand. The best approach to getting a clear understanding of the specifics of the loan requires a helping hand.
Taking Advantage Of The Buy Here Pay Here Approach
The best thing about Buy Here Pay Here is the ease in which you can take advantage of it. In fact, all it takes is a visit to your local dealership to get started. Through their financing center, you will get all of the help and guidance you need to find that right auto loan from the very start.
This requires knowing what vehicle you want to purchase in the first place. As a result, it is best to start finding an auto loan once you have the particular vehicle selected. Take some time to research and test drive your options before proceeding. Once you are done, the loan application process can begin!