Auto Finance: the Hardest Part of Buying a Car

The search for your dream car has ended! Now, you’ve found it on the lot of a local dealer. You dickered back and forth and finally the negotiations were completed and you both walked into the auto finance officer’s office, happy. The salesman is happy for the commission, and you are happy because you struck a good deal.  Now you have to deal with the auto finance officer.

Before you make any arrangements with the auto finance officer in the dealership, check out the bank and credit union as well as an online financial institution. You may find a better deal. Negotiating for an auto finance deal with the dealership can prove to be a hassle as they try to sell you a vast amount of items, they feel you should have and the price of these items will be made a part of the total amount of the loan.

The bank and the credit union will want to see your credit report and your credit score before either one would consider auto finance. If your credit report and credit score are low, you are considered a high risk and would not qualify for any auto finance consideration from them.

The online financial institutions will also want to see your credit rating but some of the companies are more lenient as they may have a high risk auto finance program. In a high risk auto finance program you will have to make higher payments each month and the interest rate is also higher.

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