When it is time to buy a new or a used car, the first thing that comes to the mind is the financing options. Car loans are now made much easier to get than before, as almost all the major banks offer car loans at some interest rate that can be somewhat labelled as ‘affordable”. If a buyer has qualified for a loan, the interest rate, the purchase price and the monthly payment would all fall in place accordingly. But with the options of car financing, one can either go for a direct transaction with the bank or to a dealer. Cars like Mazda which come under premium brands would have many dealers around with attractive financing packages, and here’s is why going with one of them would be beneficial for a buyer.
More Financing Options
As told by the Phoenix Mazda dealer, the first and foremost reason for any buyer to consider the option of financing through the dealer is because the Car dealers always have tie-up to a bigger number of financing institutions and can come with varied alternative financing options. This many options and varied packages won’t be so easily accessible to a car buyer. Moreover, for a car dealer, it is much easier to find the consumer a loan that comes at a lower interest rate asking for a lower down payment. Whereas for an individual buyer it would take a lot of time and effort to acquire all this information and following the procedures.
When the car financing is arranged in advance through a dealer, the time to come straight to the bargaining table is much lesser in comparison to a direct financing as the individual might not meet the best financing offer who can help them with all the formalities along with the best offers that fast. So, dealers do save time for both the parties and the associated hard work.
Profit for All
As revealed by the Phoenix area Mazda dealer, when financing is done through a car dealer, the financial institution provides the dealer with a small percentage of the interest against the granted loan. This indicates that the dealer earns an additional profit against the sale of the vehicle. Because of which the dealer might decide to get the buyer a loan at a lower rate than it would have cost when availed through direct purchase. This is a magic deal for all as it benefits the consumer, the dealer and the financial institution as well.
Finally, when you go shopping for a car loan, it is necessary to compare the amount of the total loan, the down payment and the number of months through which you would be paying the interest and in which rate. Sometimes it could be a confusing situation if the car dealer or the financial institution offers a lower interest rate, but ask for a larger down payment or insists on extending the term of the loan by more number of months. In such cases, the monthly payment might count as lower, but actually, it would overall cost the consumer more money. Hence, one should take ample time to calculate all these factors before signing up for any loan, even if it is done through a dealer.