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