What You Can Expect From a Finance Team at a Car Dealership

Financing your next vehicle by taking out a loan can provide the funding you need to purchase your dream car — without paying a significant amount upfront. While you can discuss your financing options with banks, credit unions, and other vendors on your own, working directly with a car dealership can help save you time and provide you with more options.

If you’re wondering what you can expect from a finance team at a car dealership, we’re here to help. Our team at North Coast Auto Mall of Bedford, Ohio, has put together a guide to help you prepare for financing your next vehicle.

Filling Out Applications

While it’s common today for many car dealerships to offer secure finance applications online, you can also work with a finance team to fill out these applications in person. However you decide to apply, the dealership will typically guide you through each step of the process to make it as simple and straightforward as possible.

Some information you may need to provide when applying for financing includes your name, address, social security number, email address, and phone number. The application process typically takes just a few minutes to complete, making this a quick and easy way to kick-start the purchasing process for your next vehicle. 

Negotiating With Lenders

Once you’ve filled out a loan application, the finance team will work with trusted lenders in your local area to find the best financing options for your circumstances. Car dealerships often have strong relationships with several financial institutions, making it easier for them to negotiate contracts and find a financial package that suits your needs. 

The finance team will discuss your application with these financial institutions on your behalf to secure the best interest rates so you don’t have to contact each lender on your own. They’ll also evaluate each of the available financial packages and narrow your options down to the best ones on the list. This can speed up the car-buying process and make it more enjoyable.

Reviewing Contracts

Once the finance team at your car dealership secures several loan options, they’ll present each of them to you. Typically, this meeting takes place in person; one of the dealership’s finance experts walks you through each contract and outlines the pros and cons of each agreement.

They may also use a tool like a vehicle payment calculator to estimate your monthly payments while factoring in your down payment and the trade-in value of your current vehicle. This can help you compare interest rates and loan terms objectively so you can make a more informed decision about which lender you choose to work with and how to finance your next vehicle. Consider how long you’re willing to commit to a payment plan and have an open discussion with the finance team so they can provide their expert advice.

The finance team will also encourage you to review each contract carefully before signing to make sure you select the one that’s just right for your budget. They may explain each of the charges included on the finance contract so you understand exactly what you’re paying for. Some common line items to look for include the vehicle’s title, license, and tax amount. If you have questions about the contracts you’re reviewing, the finance team is there to answer them and offer their support.

Sharing Promotional Offers and Rebates

One difference between working with a finance team at a dealership versus taking out a loan directly through a bank is that dealerships may have promotional offers available. Before you sign a contract, the finance team member you’re working with may present any available offers, as well as deals from the manufacturer of your desired vehicle. 

For example, your car dealership might offer a 0% interest rate for the first six months or provide a bonus based on your down payment. Discussing these promotional options with the finance team can help you save a significant amount of money and make purchasing your vehicle on the same day more affordable.

Some vehicle manufacturers also provide loans and lines of credit through their own financial institutions. The finance expert you work with may mention this, depending on the type of vehicle you purchase and the relationship your car dealership has with the manufacturer.

Often, these institutions offer additional rebates up to $1,500 if you choose to finance with them. This can provide a substantial bonus and allow you to make a larger down payment on your next vehicle, shortening your loan term and helping you save money in the long run.

Discussing Optional Policies

Besides reviewing your financing options and their promotional offers, the dealership may provide different policies you can choose to add. For example, they may have packages that include extended warranties, GAP insurance, maintenance plans, or paint protection. While these policies are optional, many of them provide valuable coverage that can save you repair or replacement costs in the future.

Take the time to review these policies carefully and ask the financial team questions to ensure you understand what’s included in each package. Then, consider how often you plan to drive your vehicle, what driving conditions in your area are like, and what your monthly budget is to choose policies that make the most sense for your unique situation. Knowing how many miles you typically put on your car each year can also help you choose which extended service policies are the most beneficial.

Looking to Finance Your Next Vehicle?

We hope this article helped you learn more about what to expect from a finance team at a car dealership. If you have questions about financing your next vehicle, our friendly team of experts is happy to help. Contact us today to learn about your financing options and secure a competitive rate. You can also apply online to get pre-qualified for a loan. Once you receive your quote, stop in and let our sales team at North Coast Auto Mall of Bedford help you choose a vehicle that’s just right for you.

Posted in Financing