dealer financing

The Ins and Outs of Buying a Car from the Dealer

Not too long ago, we talked about some of the benefits of dealer financing. In that article, we highlighted the fact that dealer financing can be more convenient; it is typically easier to negotiate with dealers on rates and promotions. 

Of course, this all sounds great, but what is the process for getting a loan from the dealership? Great question. Here's how it works:

  • Once you've finished shopping and have you eye set on a car, the salesperson begins working on the deal. They may need to check with a finance manager to discuss price, warranties and other products. 
  • A dealer will probably need to run your credit unless it's been run there in the last 30 days. 
  • A dealer will then need to get your loan pre-approved.
  • If you have a trade-in, the car will be appraised to figure out the pay-off amount.
  • You will then agree on a sale price for the new car and start the paper work. 
  • You'll share your driver's license, proof of insurance, the title for your trade-in vehicle, your registration and arrange payment.
  • While this is going on, the dealer is washing your new car
  • Finally, after all the paperwork is processed, you get the keys. 

This process seems complex, and it is. The average car purchase takes roughly 4 hours. To speed up the process, try shopping during the week. If that's not an option, do the trade-in appraisal on a different day, and have your paperwork ready.

We hope this will give you a better understanding of the car-buying process and make it a smoother experience. 

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