Benefits of Direct Auto Loans

When buying a car, most people near Windsor will take out a loan in order to do so. They may or may not make a down payment to reduce the total amount needed to be borrowed, but taking out a loan allows a person to buy a more expensive car up front and make monthly payments to pay it off down the road. These days, vehicle financing is available not only for brand new cars, but used cars and leased vehicles as well. When it comes to applying for financing, Ontario car buyers have two main options: obtaining a loan directly from the dealership or applying for financing from an outside third party. Between direct auto loans and bank loans, how can you know which option is best for you?

Comparing Direct Auto Loans and Bank Loans

In order to figure out the best option for you, it is best to start by understanding some of the basics of dealership loans versus traditional bank loans in Windsor. In general, a bank car loan has much more strict guidelines and requirements in place that financing applicants will need to meet in order to be considered for approval. This may include a credit check, detailed employment and income check, and a drawn-out application process. Since banks are subject to Federal regulation, these guidelines and steps are required of every major financial institution, bank, and lender.

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On the other hand, a dealership loan allows for the disbursement of direct auto loans from the dealership itself. This type of loan does not require an outside third party to provide the buyer with financing. Furthermore, since dealerships are not subject to the same regulations and laws as banks are, many dealerships make the application process a lot easier. For example, here at Ontario Cars On Credit we will let you apply online to get approved and many do not even require the applicant to go through a credit check in order to be approved.

Which is Right For You?

While there are advantages and disadvantages to both dealership and bank auto loans, a direct auto loan is typically better for those who:

• Have had a hard time getting approved for loans in the past.
• Have a low credit score or other poor credit history, such as unestablished credit.
• Want to avoid a long and drawn-out application process.

You may be stuck with slightly higher interest rates, but a direct auto loan can certainly make it easier for you to get into the car that you need as soon as possible.