Financing Options for Owning a Car

You want a car, but don’t have enough cash to have one. The first thing that may catch your mind to have one is to try car financing. But what are your options?

There are mainly two types of car financing: Direct Lending and Dealership Financing. Bought has advantage and disadvantages.

Direct Lending

From the word direct, this kind of financing is lending directly from the bank, credit union or a finance company. It’s like borrowing money from Person A then buying a car to Person B.

• Advantage

              Having this kind of finance gives advantages. First, you have the power to shop                       around and ask different lenders about their lending terms and conditions before buying a                     car.

You also cut a middleman that also saves you a lot of money.

• Disadvantage

              If you have a poor credit history you will find yourself having a hard time finding a                 financing institution that will lend you money. There is often a high standard that is                             demanded by banks before lending.

Dealership Financing

From the phrase itself, you will get financing from the dealership. It’s like borrowing money from Person A and buying a car to the same person.

•                 Advantage

                You will have the convenience for having it all in one place, finance and the car.

                Dealers may have multiple banks and financial institution to get money from. Because of                     this multiple financing options, you will find yourself at ease for having a variety of                             financial options.

                There is a high probability of having low-rates or special discounts.

                Car dealership varies standards before lending one. There are, like banks, have a strict                         standard before lending you money. But some has personal criteria for each individual.

•                 Disadvantage

                The program may be limited for certain kinds of car and/or may have a term for a larger                       down payment or short period of contract.

These programs may have a tough credit rating.

Before you decide which option you will choose to finance your car, it is better to be open to both. In Miramar there are local car dealerships for used cars. Try to research such offer. You might also want to research autofinancing rates maybe in Deerfield Beach. The moral of the story is research first before having a deal. Just like having a strategy and knowing the facts and factors before going to a war. Buying a car is the second most expensive thing you will buy so you must give it a lot of thoughts.