What Are the Alternatives to Bank Financing For a Car Loan?
These days there are many alternatives to bank financing when looking to secure a car loan. When thinking about getting a loan, we typically think “The Bank”. But a majority of us just can’t get approved at the bank or have to jump hoops to get the bank to do anything at all. There are many lenders in the market that offer car loans at the same rate or even better. These lenders are normally associated with pre-owned vehicle dealerships and are very strict on their selection of used car dealer partners.
Being part of the business, I have seen multiple lenders come and go. These days, the banks have even setup and purchased existing financial institutions that specialized in car financing. The banks had found that there was a lot of business that they were not retaining and being swallowed up by third party lending companies. Now, when dealing with some third party finance company, you may be dealing with a major bank and not even know it.
Most lenders align themselves with new and used car dealerships. The dealerships have to meet specific requirements to be allowed to offer financing to consumers and even after they meet these requirements, their past track record is also looked at to be able to have an approval from the bank.
If you are looking for an alternate to banks for a car loan, visit some of your local used car dealerships and ask them how many different lenders they have. Typically, a well established dealership with a good history with have about 8 lenders. If they don’t have all major banks, then they may have lost the lender due to activities that were not favored by the bank. Use extreme caution when financing with these dealerships.
In Ontario, Auto Funds has 9 different lenders and work along side reputable dealerships to accommodate all the needs of the consumer. They are considered auto loans Ontario specialists. If you have an questions, their finance professionals are always willing to help!