Buying a car is something nearly 17 million Americans do on a yearly basis. Finding and buying the right vehicle will require a lot of hard work and professional help. If a person is new to the world of car buying, they will need to figure out what their first move should be.
Most experts maintain that the best thing a person can do before buying a car is getting approved for a car loan. Trying to get financing through a dealership can cost a consumer lots of money, which is why using a third-party for this loan is a good idea. The following are some reasons why getting approved for a car loan before buying a vehicle is a wise move.
Negotiate From a Position of Power
One of the main reasons why a person needs to have their loan in place before going to visit a car dealer is because it provides them with a great bargaining chip. If a buyer knows exactly what they have to spend on this purchase, they can avoid haggling with the salesman over price. This information can also help a car buyer avoid getting shown vehicles that are out of their budget.
When getting financing through a dealership, you are effectively giving up the control you have over this process. Getting a loan from a third-party lender is the best way to stay on budget and avoid getting taken advantage at the dealership. Before choosing a lender to work with, a buyer needs to consider the reputation and interest rates a company has to offer.
Avoid Giving Out Sensitive Information to Multiple Lenders
When applying for a car loan through a dealership, a person will have their credit report and personal information transmitted to a number of different lenders. The more lenders this information is transmitted to, the higher the chance of identity theft occurring will become. This is why getting pre-approved from a lender before going to the car dealership is a great option.
Looking for affordable car financing? If so, the team at Consumer Portfolio Services can help out. Visit their website for more information about the lending services this company offers.