Every individual would like to drive his/her own car. Buying a car might be a lifetime goal for some and for some might be a passion. However, the practicality is that not everyone can fund the purchase of the dream vehicle. The recent economic turmoil has added fuel to the fire and it has left many people to be financially bankrupted. The recent developments prove to be a good sign for recovery and the automobile industry has started picking up its sales. Most of the people would like to take a loan to buy their dream car. A lot of people cannot afford a new car and so think for opting for an economical used car. Choosing between buying a used car through dealership financing and private party car loans needs a lot of ground work research and analysis. Lets compare the deal here.
Advantages of Private Party Car Loans:
Private party car loans can be obtained at a faster rate when compared with others. A normal underwriting process will take place for a standard vehicle loan. The loan will be approved within hours of time with less amount of paper work.
Private party auto loan lenders offer flexible terms for the loans and you will not have a tough time to negotiate the terms. You can get a highly customized program depending upon your financial requirements.
The loan terms can be extended if required at the end for a higher rate of interest.
Private party car lenders do not demand a huge lump sum amount which has to be paid as upfront fee.
There no specific requirement needed to qualify your car while applying for individual seller car loan. Just a few document and you can get a private party car loan.
Disadvantages of dealership car financing:
Credit score scams: You would have possibly come up with a fair amount of credit scores after being toiled and moiled. This score could be a better score to get the deal approved at the normal rates. However, you will often envisaging a situation where a senior officer walks to you saying that according to their calculation, the credit score is too low for the loan to be approved. They would force you to take the loan at a higher rate of interest which is considerable only for the valuable customers.
Dealership financing is just yet another product that is sold by the dealers. They always want to make profit out of their business and do not fell scapegoats for their greed. Do not accept any deals that has got less than 2% APR as this is highly impossible except a few occasions.
The auto dealership financing can be looked as a one stop shop for all your needs. However, you must remember the fact that you cannot customize your needs and have to shell out extra money for unnecessary expenditure. The buyer must decide the kind of financing depending on the pros and cons of the lenders and loans.