The Benefits of Financing a Car Through a Dealership


Looking to buy your dream car? For many, to buy a car you need to seek finance. In 2022 there are two ways you can go about gaining finance. You can either gain finance privately (on your own) or you can get finance through the dealership you are looking to buy from.

Both sides have their positives and negatives and choosing between the two can be difficult. If you are leaning towards receiving finance from the dealership there are many benefits that can help save you time and most importantly money.

Here are the Benefits of Financing a Car through a Dealership.

Simplified Process

The major advantage of getting finance through a dealership is it’s simple and convenient. When you look to get finance on your own you need to do all the heavy lifting. You need to reach out to lenders or different brokers to find the best lending option. The problem with this is it takes time!

Applying for finance through a dealership simplifies the lending process. At a dealership all you will need to do is submit a brief finance application that covers essential information like how much you earn, how much you can afford to pay and most importantly how much you want to borrow. The dealer will then send your application off to their finance provider to find you the best deal for you based on your lending criteria. The dealer will then come back to you with provided financing options, and you can either accept or decline – no heavy lifting, no wasted admin tasks!

Multiple Options

When it comes to getting the best finance deal you need to have options. Another great benefit of using a dealership for finance is you receive multiple options based on your application and lending ability. When you apply for finance on your own, you generally need to speak to lender after lender to see where the best finance rate lies. But when you go through a dealership you get presented with the best option available from an abundance of lenders.

Since the Royal Commission into Dealer Financing in 2019, Motor Dealers are now required to be open and transparent with their financing methods and options they have available for customers. They cannot present you an offer that favours their dealership and not you the customer. Having more finance options gives you the ability to pick the right one for your individual circumstances.

Car Finance

Competitive Prices

For any type of financing, it’s so important that you get the best lending rate, or you could spend thousands more than you need to. A negative of seeking finance options on your own is you may not find the best rate available. Finance companies are growing from pillar to post and are fighting for your business. Gaining finance through a dealership helps you get competitive and better prices available that you may be unaware of or advertised online.

As a dealer uses a finance company to set up finance deals you can get access to cheap lending rates that may not be advertised or available directly online. Having access to the lending deals that aren’t currently advertised online can save you thousands in repayments over the term of the loan. Like mentioned before, the more options the dealer has for financing, the better rate you will get and most importantly the more money you will save.

Offers Options Even If You Have Poor Credit

The first thing that all lenders look at when it comes to financing is your credit history. If you have a poor credit score, it is very difficult to get access to financing. If you are looking to apply for finance on your own with a poor credit score it is almost impossible that you will get approved, this is where a dealership can help.

The benefit of applying for finance through a dealership is they will work with you to try get you financing. Some dealerships already have certain packages they offer to buyers who have a poor credit history, yes, these options will be more expensive than others who have a good credit history as your risk is higher. This is so advantageous to some as repairing credit history can take years to achieve, if you need a car desperately dealer financing can open the doors.

Final Word,

There are so many benefits to getting finance from a Car Dealership. It simplifies your process, gives you multiple competitive options and most importantly can help those with a poor credit history get their dream car. Like anything, before you apply for any type of loan, whether it be on your own or through a dealership you need to conduct relevant research, understand the loan types, and consult with all relevant parties to get the best deal.

We hope you enjoyed reading this article, to read more articles like this visit the Shop for Cars latest news page here.

Where Shop for Cars Can Help?

Shop for Cars is Australia’s first dealership only car classified offering car buyers’ access to over 12,000 new and used cars for sale from Motor Dealerships only. Shop for Cars also offers customers a simple and innovative finance option which gives you access to over 40 lenders at the click of a button.

To learn more about Finance in Shop for Cars click here.

DISCLAIMER: This is all based on opinion please research and consult with all relevant parties to make the best buying decision.