Buying a new car is fun. But it can also be kind of scary. When you consider the price of a new car, you quickly realize that you are making a very important financial decision. For most people, purchasing a new car adds a significant burden to their familiy’s monthly budget. But most people feel that the benefits of having a safe and reliable vehicle outweigh, or at least offset, to some extent, the financial burden. So, when shopping for a new car, many people are primarily focused on the cost of the car. Unfortunately, far too many people ignore the cost of financing their new vehicle.
One reason that people pay little attention to auto financing is that the don’t have to. Every car dealership in the country is advertising that they can get fast and easy financing for everyone. And they usually can. Car dealers have relationships with hundreds of lenders that will try to arrange a loan for anyone, regardless of their circumstances. In fact, car dealers are experts at evaluating their customers financial status, and matching them up with just the right lender.
Most people mistakenly assume that a car dealer is helping them get financed because he is being a nice guy who just wants to make money on the sale of the vehicle. Nothing can be further from the truth. Auto financing is a major industry; and car dealers make an enormous amount of money from arranging auto financing for their customers. What most people don’t know is that when a car dealer is arranging their car loan, he is putting himself between the lender and the customer.
Since auto financing is such a big business, there is fierce competition among financial institutions to get their share of the market. One tool that lenders use to encourage car dealers to use their company is to offer the dealer a way to profit on the deal. Simply put, the bank offers to give the loan at one interest rate and the dealer is allowed to present the loan to an unsuspecting customer at a higher interest rate. And this extra interest results in the unsuspecting buyer paying way higher monthly car payments than she should otherwise be paying.
If you find yourself in this situation, don’t despair. Simply call Ignition Financial and ask them, “How can I slash my payments?” The experienced professional staff at Ignition Financial will quickly set you on the path to refinancing your auto loan so that you can immediately reap the benefits of having drastically lower car payments.
SWball February 1, 2017
Posted In: Save Money