When deciding on a vehicle, you obviously have several questions and one of the big ones is do I or don’t I finance. One way to make that decision is to look at the interest rates. Where would you want to finance through? The dealership or individually? If you go individually, you would be able to determine who you would want to go through and maybe get a better rate with your personal bank. It is totally up to you whatever you decide, but I am going to let you know some of the different factors that go into getting financing and what determines the interest rates. If you bank through a certain bank and the dealership has the option of financing with them, you may have a better chance of getting the auto loan because they know your history of paying, your financials, etc. If you are challenged with credit, or trying to rebuild, or have never had an auto loan, secondary financing may be the best option for you. What is secondary financing you ask? Well, it is financing that is offered to customers who are struggling and cannot get a traditional car loan. This can be anything from never had a car loan, to repossessions and bankruptcies. The higher the score, the lower the interest rate is for the loan. So, if you have a 700-800 your score will be lower than someone with a low 600 score. Second, your credit history. If you have had a car before and it had been repossessed, then your interest rate will be higher. Finally, if you have a down payment, that will go a long way to decreasing the amount of your loan. If you have declared bankruptcy, then your interest rate will be higher. Keep this in mind… It never hurts to try! If you want a car, try. You never know if some bank will take a chance on you.
