Get Better Financing Offers Do the Homework First

Why Get Financing Before Going to the Dealer

Amanda Hart

Can't hurt

If you are a savvy car buyer, you know that getting the best financing from national lenders before going to a dealership is the way to go. Shopping for financing is every bit as important as the actual vehicle shopping itself, but many people still don't understand why.

As you already know, your financing will greatly affect how much money you will be paying in the long run for your car deals. Just a fraction of a percentage point off your interest rate equates to hundreds of your dollars, so it's obvious that your number one priority should be getting the best rates.

How it goes down

There are tons of dealers around the country that offer their own financing right in house. Many people would think that is the best option. One stop shopping for such an important and stressful purchase makes things a bit easier.

However, most these dealers that offer their own car loans are partnered with smaller lenders who cater to people with bad credit. If you have good credit, you qualify for much better offers than these in house places.

Also, there's no real reason for the dealer to shop around lower rates for you. After all, why would they? You are kind of forced to take their word on it, and hope it really is the best deal you can get.

This is how it will benefit you to do your own research and shop around for loans first. You will know what your ballpark range is since you have already fielded several offers, so you will know if the dealer is really getting you a deal.

On top of that, if you show the dealer the rate you already secured on your own, many times they will try to shave off a bit more to beat the deal. Just showing the dealer you mean business about getting lower prices can really take you a long way.

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