Breaking Down Auto Financing at a Dealership
Considering the current scarcity in the car industry, the demand for used cars is higher than ever! In response to this change, widespread access to affordable financing is more important than before. If you are interested in purchasing a car but not sure where to start, here is a breakdown of the basics of auto financing!
Auto Financing Options
There are a few avenues you could go down when financing a car. Whichever ends up being the best for you all depends on your preference and financial circumstances. Here are three paths that you can explore:
Direct Financing
This type of financing does not involve the car dealership at all. Instead, the finance application, approval, and the money lent to you are all completed directly through your bank. Afterward, you will take the money borrowed from your bank to the dealership.
In-house Financing
The most direct financing that dealerships offer, the in-house option, usually does not have a strict pre-approval process. So if you are searching for a “bad credit loan” in your browser because you are worried about not having access to auto financing, this might be the most suitable choice for you!
Indirect Financing
This financing involves your dealership and bank. First, you apply for financing through your dealership. Then you will sign a contract with your dealer that flushes out details on payments, time, and interest. Finally, a bank will buy the contract from your dealer and take over.
If you want access to special discounts, support from an attentive finance team, and various financing options, indirect financing through a Tonkin Automotive dealership is the best option!
Prepping Your Car for the Dealership
Before taking off to your dealership, you will need to prepare a few things for the financing process. Here is a brief overview of what you need to address and what you need to have on hand.
1. When you have a trade-in: If you are still paying off the vehicle you plan to trade in, consider finishing your payments beforehand. If you have a balance left, it will negatively affect the financing of your next vehicle. On the other hand, if you paid off your current vehicle, your trade-in would cover the down payment you will owe on your prospective car.
2. Dealing with your insurance company: When preparing for a new car purchase or trade-in, get in touch with your insurance company to settle transferring car insurance. Your dealership cannot proceed with financing until you obtain full coverage for your future vehicle.
3. Calculating down payment: It is always wise to have a general understanding of what your down payment could be before heading to the dealership. Based on your credit score, it will most likely be around 10% of the vehicle’s initial price.
4. Other things to bring: If you want the financing and purchase process to go as smoothly as possible, come prepared with your license, income documentation, the title of your current vehicle, and any other relevant documents.
Auto Loans Near Me in Portland, Oregon
At Tonkin Automotive, we understand how the state of the market is affecting our valued customers in Portland, Gresham, Beaverton, Troutdale, Milwaukie, Gladstone, Wilsonville, Hillsboro, Tigard, Salem, Oregon City, OR, Vancouver, WA, and the surrounding areas.
With this in mind, we continue to provide special offers on new and used vehicles and outstanding finance services at all of our dealerships in Oregon. Whether you settle on a used Ford F-150 or a new Toyota RAV4, our finance departments will be there to guide you every step of the way. So the next time you are car shopping, search our new inventory or browse our used selection today!