You need a car. Here at Griffin Chrysler Dodge Jeep® RAM, we want to help you find the car you need. The big question, though: how do you pay for it? Read on for an overview of some frequently asked questions, from what financing means to how to secure Chrysler financing.
What Does Financing Mean?
When you finance a car, you are taking out a loan to pay for it. There are several different methods for this.
What Are My Financing Options?
You have two main routes for financing a new or used car: direct lending or dealership financing. Direct lending is a type of loan which has the buyer borrowing the money for the car from a bank, credit union, or finance company.
Dealership financing means the dealership will be financing the purchase. The buyer enters a contract to buy the car over time with payment plan in place. The dealer generally sells this debt to a bank or other third party, which is where the buyer’s payments will go.
Should I Choose a Direct Loan or Finance Through a Dealership?
Both options have their advantages and disadvantages. You can get pre-approved credit terms with a direct loan and can nail down the length of the loan (in months), annual percentage rate (APR), and the maximum amount. All of this can be used in your dealer negotiations.
Financing through a dealer can mean access to a wide variety of often negotiable special offers and deals.
What If I Have Bad Credit?
You can wait and try to get your score up by paying off or settling some debt. You can also enter an arrangement with creditors and make monthly payments.
Contact Griffin Chrysler Dodge Jeep RAM today and find out what kind of financing options are available for you!
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