With 2.3 million auto loans originated each year, car financing remains the most popular way to purchase a new or used vehicle. If you’re thinking about shopping around for a new vehicle, you might wonder if you should apply for financing at your local Subaru dealership or find a lender ahead of time. Here’s why you should consider applying for financing at the dealership.
1. A Convenient Option
Your time is valuable. While comparing auto loan rates on your own can take several days, your local dealer can submit your application to their network and get answers within minutes.
Your dealer can also share information about the vehicle you want to purchase with potential lenders. If you decide to shop around for financing ahead of time, be prepared to go back and forth with lenders to provide details about the car you want to finance before getting a final answer.
2. Experience
Car dealerships process hundreds of financing applications each week. The representative who assists you will be able to answer your questions and share valuable advice regarding the application process.
You can also count on them to use their knowledge of the financing process to help secure a loan with lower fees and interest. This experience is especially valuable for those with a low credit score or a limited credit history.
3. Compare Offers
Dealerships typically work with a network of lenders. Once you fill out an application, they will share your details with a number of financial institutions. If more than one bank or credit union approves your application, you’ll be able to compare offers.
Another benefit is that your car dealership will send your application to multiple lenders on the same day. Credit reporting agencies will consider these multiple inquiries as a single entry when updating your credit score.
4. Vetted Lenders
Shopping around for a car loan means you’ll have to conduct due diligence on the lenders you’re considering. You’ll also have to watch out for the numerous online scams designed to steal your personal information.
When it comes to safety, applying at the dealership is your best option, since car dealers have a network of lenders they are familiar with and can vouch for.
5. Promotional Offers
Financial institutions aren’t the only way to finance a vehicle. If you’re in the market for a brand-new Subaru, you can qualify for financing through the manufacturer as long as you have excellent credit. You can also find dealers who offer financing specials on pre-owned vehicles. These promotional offers can help you save a lot on your new vehicle, and you wouldn’t have access to these options otherwise.
Are you ready to take the next step and apply for financing? Stop by Stevens Creek Subaru in Santa Clara, CA. We offer a convenient online form, so you can start applying for financing, and our experts are available to answer all your questions or tell you about our specials!
Connect with us
Archives
Categories
