Last Chance Car Financing for New Jersey Shoppers
Getting your car loan “in house” from a car lot or dealership is typically a last resort form of financing. Though some people have trouble getting approved due to bad credit, the need for a car doesn’t go away.
In these cases, dealer financing may be the only way to go. It definitely won’t give you the most bang for your buck, but hey, it might be better than no car at all. One of the primary things to know is that car dealers themselves rarely lend New Jersey car loans themselves. This is a very common misconception. Rather, dealers have a relationship with multiple banks, lenders, and credit unions to which they submit your credit application.
The finance company actually pays the dealership for the new car or truck, and you make your payments back to the lender. Dealers may receive kickbacks for setting up auto loans, and it is true that dealers may have an easier time getting you approved than you would have all on your own. That said, it’s good to know that the dealer or auto finance manager usually has his hand in the pie…somewhere, somehow, some way. He is looking to profit not only by selling you a car, but by having some stake in your auto financing arrangement.
The money that goes to him could be better kept in your bank account. For this reason, you may want to explore other, more traditional avenues of financing prior to settling for dealership financing. You might want to try the internet to get pre-approved for an auto loan. That way you won’t be so reliant on the dealership’s auto finance office for everything, and you can be in a more powerful bargaining position once you go in to buy your vehicle.
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