Should I Finance Through A Dealership?
When you’re in the market for a new vehicle, there can be a lot to consider… what make, model and year are you looking to find, will you be buying new or used, and even if you’ll secure financing? If so, should you find it independently or should you finance through a dealership? While we may not be able to make some of those decisions for you, we can help provide helpful information regarding the positives and negatives of financing through a dealership.
Know Before You Go
Before you decide if financing through a dealership is the right choice for you, it’s important to know what your credit score is, what you can do to improve it and double-check there aren’t any errors on the report. Your credit score includes information about you to lenders on where you live, if you’ve paid your bills late or on time, and whether you’ve been sued or have filed for bankruptcy before. The information found within that score is one of the biggest determining factors on not only being able to secure a loan but what interest rate you’ll end up paying for it once you do. Fully understanding how a great credit score can make the difference between securing your financing at an excellent rate or not even being able to get a loan at all, it only makes sense to do a little detective work into where your credit stands beforehand. While many credit card companies offer credit reports monthly for free, the Fair Credit Reporting Act requires all 3 of the nationwide credit reporting companies — Equifax, Experian, and TransUnion — to provide you with a free copy of your credit report, at your request, once every 12 months. By requesting a free copy of your credit report, you can verify that there are no errors that could end up costing you more or show you what habits you might need to change in order to raise it. If errors are discovered, the law requires the company who gave the information to the credit bureau to correct it. You can find more about your rights under the Fair Credit Reporting Act on the Federal Trade Commission’s website here.
All Loans Are Not Created Equal
Many people do not realize it but many dealerships tack on their own higher points to your financing in order to make more money on the sale of the vehicle. While Broadmoor Motors does not add points to interest rates, the average markup of other dealership’s interest being 1.8% per loan, that small amount can make a big difference in your long term cost of the vehicle. Make sure you understand all aspects of your financing before signing on the dotted line including interest rate, length of the loan and any unnecessary fees that might have been added to the terms. Financing contracts are binding and you’ll find yourself with little recourse after the fact. Working with trusted, reputable dealerships like Broadmoor Motors who offer transparent financing with many local credit unions and banks can help alleviate any undue risks and concerns.
The More You Know The Better
Now that you know it’s possible to secure financing with a trusted dealer without paying additional points, it’s important to arm yourself with knowledge before you start shopping so you can feel confident you’re getting the best rate possible. Whether you have a favorite local bank or credit union, we recommend shopping around to many in the area or even online to see what you dollar amount you can be approved for and what interest rates are available to you. Contrary to what you might expect, lenders are not required to give you the best rate you qualify for regardless of your credit score. You’ll want to make sure you only shop around within a 2 week timeframe to ensure you don’t hurt your credit score. When comparing offers from different lenders, make sure you look at more than just the interest they charge. Keep an eye out for hidden fees, prepayment penalties and that the loan is for the same amount of time since paying longer on a loan can add more to the overall cost.
If you find yourself searching for your next used SUV, minivan, truck or car to fit your needs and your budget, we invite you to check out all of our theft recovered inventory or all of our current inventory of Used Trucks, Vans, SUVs and Cars. At Broadmoor Motors, we specialize in finding the right used minivan, truck, SUV or car to fit your personal or business needs, all while giving you the best deal we can on both your purchase and trade-in. Our family has been in the car business for over 60 years and continues to be family owned and operated in all of our Caledonia, Hastings and Wayland locations with financing available to those who qualify. We will find you the right vehicle to fit both your budget and your needs in a pressure-free environment.
Check out our reviews online and buy with confidence!! Family Owned & Operated and with Financing Available, we stand behind our Vehicles and our Warranty so you can be assured your used Car, Truck, Van or SUV will be reliable! Broadmoor Motors is your local choice for Car Sales in the greater Hastings, Middleville, Caledonia, Grand Rapids, Wayland, Byron Center, Dorr, Hopkins, Kalamazoo, Battle Creek, Lansing, Lake Odesa, Kentwood, Holland, Zeeland, Moline, Cutlerville, Wyoming, Hudsonville, Grandville, Jenison, Hamilton, Ionia and Allegan. Ask about our BMG Protection Plan, this is not an aftermarket product! area. Let Broadmoor Motors save you time and money when buying your next quality, Pre-Owned Car, Family Minivan, All Wheel Drive SUV, Commercial Van or Work Truck. Whether you need to replace your current car, minivan, truck or SUV with a great used vehicle, we can help you out. Broadmoor Motors is here for all your Car Sales, and Auto Service needs in the Byron Center, Kentwood, Caledonia, Middleville, Hastings, greater Grand Rapids, Wayland and Barry County area. With three locations to serve you in Wayland, Hastings and Caledonia, we’re here for all your Sales & Service needs. Give us a call at 616.698.9595 in Caledonia, 269.397.2400 in Wayland or 269.320.6304 in Hastings to see how we can get you back on the road!