Tag Archives: pre-owned car

Car Dealerships and the Incentive for Low Interest Rates

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Recent statements from the Consumer Financial Protection Bureau have left car buyers worried that their local dealership will intentionally set them up with a high interest rate.

In a recent commentary for Automotive News, Jim Henry explained why that is simply not the case. Auto dealers are actually more motivated to get their customers a lower interest rate than, for example, a mortgage broker because a mortgage broker will only make money on the mortgage. When it comes to an auto loan, a dealership is set to make money, even if they take a lower interest rate, because the dealership will make money on the service of the car.

Besides this argument, there is great availability of low-interest auto loans to consumers, even those with bad credit or no established credit history. Car buyers can negotiate lower monthly payments, lower interest rates, longer loan terms, or whatever they need for their particular credit and financial situation. All it takes is a car buyer sitting down with a dealership’s finance department and exploring their options.

Obtaining an auto loan with bad credit or without a credit history can be difficult, but it is achievable. Contact a sales person at Bayside Chrysler Jeep Dodge and find a time to come in so we can work with you to find the proper loan. We’ll get you driving away in the new or pre-owned vehicle best suited for your lifestyle. Be sure to like us on Facebook and to follow us on Twitter to see our monthly specials.

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Getting a Top Credit Score in 4 Simple Steps

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ID-100172171A recent article from US News & World Report points to four common habits of consumers with FICO credit scores of 785 or higher, the top bracket of credit scores. What set these consumers apart from the rest? Read on to find out.

First, these consumers did not miss their payment due dates. 35 percent of an overall credit score is based on payment history, and after missing a payment, a consumer’s credit score will automatically drop. Making payments on time is one of the quickest and most substantial ways to improve a credit score.

Second, they try to keep credit card balances below 20 percent or 10 percent if possible. The key is to keep the card active while maintaining a low credit utilization across the board. Consumers who are maxing out all of their credit cards appear riskier to banks and lending institutions.

Third, they do not close old credit card accounts. Credit scores are partially calculated based on how long a consumer has been utilizing credit, and if the credit card account is closed, the card will stop reporting to the credit bureaus. For example, let’s say that Jill has a credit card that has been active for 18 years, a car loan that she has been paying for 1 year, and a store credit card that she just opened a few months ago. If she closes her credit card account, her credit report will state that her credit history only goes back 1 year to when she got her car loan, and her overall score will suffer tremendously.

Fourth, they do not apply for a lot of new credit in a short amount of time. These consumers aren’t afraid to diversify the type of credit on their report, but they also are not applying for every credit card offer that arrives in the mail. Applying for a lot of credit cards or loans in only a few months is a red flag to lenders, and it can hurt a consumer’s credit score.

How are you doing on these four habits? 2 out of 4? 3 out of 4? Leave a comment below, and let us know.

Obtaining an auto loan without a credit history is tough, but it is achievable. Contact a sales person at Bayside Chrysler Jeep Dodge and find a time to come in so we can work with you to find the proper loan. We’ll get you driving away in the new or pre-owned vehicle best suited for your lifestyle. Be sure to like us on Facebook and to follow us on Twitter to see our monthly specials.

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Auto Loans: Where Will I Find the Best Rates?

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Car buyers looking for the best financing deal on their next vehicle might have the answer right under their noses.

According to the National Automobile Dealers Association, dealerships across the country are meeting or beating auto loan offers from competing banks or credit unions. Today, more customers are walking into a dealership with pre-approved financing, thinking they already have the best deal.

The truth is that dealerships can almost always find a better financing deal because they send applicants’ credit applications to multiple lending institutions. By financing through the dealership, consumers can also get additional incentives like cash-back rebates or zero-percent loan offers, and since the dealership is hoping to get parts and service business from their customers in the years to come, they will work harder to get their customers a competitive deal.

For more information on how to obtain a loan, contact a sales rep at Bayside Chrysler Jeep Dodge.  We have a wide selection of new and used vehicles to look at with competitive financing offered.  Like us on Facebook and follow us on Twitter to see more financing tips and for special monthly offers.

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