Buying a car with cash may only be possible for some. Are you also one of them? If not, financing your car purchase can be your best option. Things used to be quite straightforward when lending was done by the banks only.
But today, you get many financing options to choose from. Stay with us as we break down everything for you in this blog post with the help of Renault experts.
Attractive Options to Finance a Car
Gone are the days when buyers used to have limited car loan options. Now you have multiple options. For instance - banks, credit unions, private lenders, and dealerships. Stay with us as we explore one-by-one for you.
1. Bank Financing
When it comes to going for an auto loan or financing your Renault car, your best bet is to walk into the nearest bank. Earlier, this process was very simple. All you needed to do was walk into the bank and discuss your loan requirements.
Today, every leading bank has a separate section catering exclusively to auto financing. However, we recommend not limiting yourself to one bank. Instead, shop around multiple banks for the best loan terms and interest rates.
You can also apply for the pre-approval process to get the best rates. How can it help? Going this route can help you save a substantial amount of money. The banker will issue a letter of commitment. You can show it to the dealer and negotiate the rates further.
2. Credit Unions
What are credit unions? Well, they are financial cooperatives. They offer traditional banking services and come in various sizes. For instance, they can range from small to large to volunteer-only operations.
Credit unions have a nationwide participant base. These cooperatives are established by organisations, corporations, and other entities for their members and employees. Moreover, their participants only create, own, and manage credit unions.
And it is what makes these non-profit organisations unique. You can approach credit unions to finance your new car. Speak to their executives and see the best rate and loan tenure they have to offer.
3. Dealership Financing
A dealership is one of the most convenient places to finance your car. Do you know why? First, you don't need to submit separate applications and documents. You can do that once you have identified your perfect ride.
Second, getting dealership financing is easier than going the banking way. Franchise and independent dealerships directly working with the manufacturer offer in-house auto financing features.
It can be through a manufacturer-owned finance company, the dealership or any other third party. Irrespective of the convenience, Renault experts say dealership financing should be the last resort.
The dealers can make substantial profits by marking up the rates. For instance, if your bank offers you a 7% interest on your car, the dealer may offer it at 9%. So, it's best to first approach the banks, online lenders, and credit unions.
Once you have a pre-approved loan paper, you can negotiate rates with your car dealer. Skipping it may compel you to finance your car at the mercy of the dealers.
4. Online Lenders
Getting a car loan from online lenders can be a great financing option for some. For example, people with tight timelines or average credit scores can consider going for online lenders.
Here are the top advantages of financing your car through online lenders:
Competitive interest rates: If you have a decent credit score, you can get a better interest rate than most banks. So, you should improve your credit score as much as possible to get this benefit.
Convenience – Nothing can match the convenience of getting a car loan from the comfort of your couch. Applying for an auto loan from online lenders can be easy and quick. All you need is some identity proof, a system, and an internet connection.
Get Pre-qualified
- You can also check if you are pre-qualified within minutes. The lender will instantly let you know the estimated interest rate, loan amount, and loan term.
Conclusion
Buying a car is a big decision, and financing it can be even more daunting. However, by following the tips in this guide, you can make the process easier and get the best deal possible for your intended Renault purchase.
So, this was all about your car financing options. At Park+, we understand the importance of having a trustworthy and transparent car buying experience. Therefore, we offer comprehensive services to guide you through every step of the process.
Remember, Park+ is here to help you with car financing. Our wide range of services can help you choose the best financing options. Download the Park+ app today.