Car buyers in and around the Philadelphia area have several options to consider when choosing how to finance the purchase of a new, used, or certified preowned vehicle. There are several advantages to consider in choosing the financing offered through car dealerships rather than working through a bank or other type of lending service.
Your Credit Score
All car dealerships in Philadelphia, just like all banks, credit unions, and other types of lending companies, use your credit score when setting the interest rate on the vehicle loan. Checking your credit score and knowing the interest rate offered through the banks or credit unions in your area based on your credit score is helpful to see if the dealer financing is comparable.
Most buyers find that the financing offered through their car dealer is very competitive. In addition, the dealership may offer longer repayment terms to help reduce the monthly costs.
Get Pre-Approved
The best car dealerships in and nearby Philadelphia provide buyers the option to be pre-approved for financing through a simple, streamlined, online application. This is ideal when shopping for a vehicle as the buyer has a clear understanding of the loan amount. It is crucial to understand that the cost of car ownership is more than the monthly payment. Remember to factor in monthly insurance, fuel, and maintenance costs for the vehicle when budgeting.
Better Deals
It is not uncommon for dealers to offer 0% financing for some or all of the terms of the loan. Buyers can use this time to pay down the principal or to even pay off the vehicle without any interest during the 0% interest rate period.
