| For an average person, buying a car from one's own | | | | financier and not disclosed to the borrower. Financial |
| resources is not very feasible. With the kind of prices | | | | information is available on certain slow selling models |
| that new cars and used cars command, financing | | | | that normally have a low resale value. These are also |
| becomes a viable option. You will find many finance | | | | limited to dealer stock. In this case, you may have |
| companies offering auto loans including the dealer from | | | | limited options to color and style. |
| whom you intend buying your car. Finance may come | | | | Your finance agreement may involve hidden fees. The |
| easy, but there are complications involved in the | | | | financing options may have larger prepayment |
| process. You may later find yourself in a fix over a | | | | penalties resulting in higher down payment. You may |
| contract that you cannot afford. | | | | also have to bear higher late fee penalties for |
| Advantages of Dealer Financing | | | | payments made beyond the due date. You may also |
| The main advantage of dealership financing is that of | | | | have to pay a higher interest rate in case of late |
| convenience. Financing is quick, as it is as easy as | | | | payment. |
| walking in the car showroom and driving out in a brand | | | | Most dealership loans are compounded interest loans, |
| new car. | | | | so work out the actual interest rate. |
| As compared to other forms of finance, dealership | | | | 0% interest rate offers are offered to eligible |
| finance is fast. There are lesser hassles involved. | | | | borrowers, which is a small group of persons. |
| Dealership financing comes at competitive interest | | | | According to a study, very few people actually get the |
| rates, if you qualify certain conditions. | | | | 0% rate on 0% offers. This depends upon the credit |
| Disadvantages | | | | rating and many do not qualify. |
| Certain information is kept under wraps by the | | | | |