Why is Car buying Hard? Part 3: Financing

Shaking hands car dealer

In my previous two blogs, we covered two of the three components of what makes car buying difficult:  price and trade in.   The last piece of the puzzle is financing, which is the biggest variable in purchasing a vehicle and here’s why.

Every customer’s financing history is different.  Maybe a customer has never bought a car before, has no credit history and needs a co-signer.  Perhaps a customer had a very long, excellent credit history, then was laid off and forced to get a job at a significant salary reduction.  Maybe a person has had steady employment for many years, recently got divorced and just doesn’t make a lot. The bottom line is that each person’s needs in regards to financing are different.

Whether you have a good financial history including paying off creditors on time & every month, your monthly income and how many outstanding balances you have, all affect your credit score.  Make no mistake, a customer’s credit score is the biggest component of financing.

A car dealer’s relationship with its lenders is also important.  If a Fort Worth dealer has been in business for many years, they probably have a good rapport with their financial lenders, often making it easier to get a customer approved.  Dealers who work with several banks might be able to offer a wider variety of financial programs to accommodate the array of customers’ financial situations. This will benefit the the shopper immensely.

Want to know the foolproof way to get better financing? Make a larger down payment.   The simple fact is the more money you can put down on a car or SUV, the less that will have to be financed.  The less you have to finance, the easier it will be to get approved.

Here’s a good video to check out:

But no matter what your situation, a good dealership treats every customer how they would like to be taken care of:  with respect.  Remember that the next time you’re car shopping.