What do I do?

Auto financing. Do I try to go online and get an auto loan or depend on the dealer to get a loan? This is a question asked by many as 85% of new cars and 55% of used cars are financed. Do I go to a bank, online or depend on the dealer? In my 30 years calling on companies for their financing needs over 10 of the years I called on auto dealers working with them on offering financing to their customers. One of the companies I represented had a program directly for the auto dealer and also an online platform directed to consumers. In fact, I use to lead dealers to the online platform on certain one off transactions.

I have always been an advocate of never going anywhere blind. Most people that go for a mortgage loan try to get prequalified up front. Why not an auto loan? Good or bad credit, it is always good to have as much information as you can. Auto dealers will work extremely hard to obtain financing for any customer however do they offer the best deal. This is where online lending comes in play,. Getting an approval up front empowers you when walking into a dealership. Knowing you are approved for a loan, the terms and amount approved can shorten the buying process. You can also use a loan approval to negotiate a better interest rate. When finalizing the sale, finance managers at dealerships sometimes can offer interest rates better than what the online lender gave you. It has happened to me and was a win-win for the dealer and I.

There are online lenders that offer car loans for people with all types of credits (good and challenged credits} I advise anyone to try and see what type of deal you may get. As with all lending, one needs to look out how many times you apply for a loan. In todays lending environment one’s credit score is imperative, every time you go for a loan and your credit is pulled your score will go down a few points so beware of that however I would not let it deter me from trying to get a better rate. Use the power you may have from being prequalified.