Financing a new car is surrounded by many popular myths. Myths usually have a grain of truth, but over time, the truth is skewed and embellished. As your Bay Area Subaru dealership, we want to puncture some of these misconceptions and tell you the truth about the car loans we can provide for you.
Rates Aren’t Negotiable
If you want a loan and approach a bank or credit union, they’ll assess your credit risk, income, and other information. Once they’ve completed this process, they’ll present you with a finance offer. They determine the loan period and monthly installments based on your income and other factors. Generally, this offer is fixed and not subject to negotiation. The myth is this applies to all auto loans.
We have a different view. Unlike a bank or credit union, we contact a pool of lenders and and provide you with various options. Once we have the information, we present you with various loan options. Term length and monthly repayments can be negotiated, and you only sign the deal once you’re satisfied it meets your pocketbook and plans.
Credit Rating Is Everything
A popular myth is that you have to have a good credit rating to get credit. Part of this misconception is due to how banks and credit unions assess loan applications. If you have good credit, these institutions are very likely to offer you even more credit. If your credit rating doesn’t quite meet their standards, they’ll reject your loan application or offer you onerous repayment terms.
In contrast to banks and credit unions, we have options available if you have great credit, average credit, or credit that needs improvement. When you apply for credit with us, our highly experienced finance team will assess your financial position. We’ll work with you to reach a deal that allows you to choose the car you want and improve your credit score with affordable repayment options.
Monthly Payment Trap
An old argument is that the most important detail in a financial agreement is low monthly repayments. If you pay less each month, the theory goes, you’ll save money. What isn’t mentioned is that to provide low monthly repayments on a loan means extending the loan term to cover the amount. When you factor in interest, a longer term at a low monthly repayment will still cost you a lot of extra cash in the long term.
We don’t want you to pay far more money than you have to. We craft a deal that will pay back your new car but also not cost you excessive interest.
If you’d like to know more about financing, or to apply for a loan, call our finance department today at Stevens Creek Subaru.
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