Applying for an auto loan is a tough process. And if you have a bad experience with dealership financing, you might want to try a new path for the perfect car loan. So, we list down here the pros and cons of another way to get your dream car through our good old bank.
Pros
No added rates
Through a bank financing, there is no middleman. Simply stated, there is no dealer that’s making a profit out of your purchase. Bank loan offers low rates compared to a dealership financing. They provide the best loan terms for you.
Established system
Banks have top-notched services in any loans. They offer a no- joke security. Who better can manage your finance than THE Bank?
Accessibility
In every commercial establishment, there is always a bank waiting for you! And if you want to easily access your auto loans, have it with the advanced services of a bank. Almost all the banks offer online banking and customer hotline that can help you in every way.
Stability
Unlike other dealership and credit unions that can lure you to unclear terms, banks offer a conclusive and comprehensible agreement. You don’t have to worry about unpredictable charges anymore!
Cons
No strangers allowed
If you’re not a long-time customer from a bank, you’re aiming for. Don’t be disappointed to be rejected for a car loan. Some banks preferred potential people who have a credit history — especially a good one. So, say you’re applying a car loan to a Bank A even if you’re a client of Bank B. Like I said, they’re wary of strangers. But, don’t let this stop you from reaching to banks.
Stricter requirements
You have to pool a lot of guts to apply for a bank auto loan if you are a bearer of bad credit. Having a low credit as we know it is the root of your hard journey for a series of loan application. This includes a bank loan. And this time, unlike credit unions that will be more tolerable of you, banks will either blatantly reject you or politely reject you. But again don’t let this stop you. Do everything in your power to improve your score. Pay off your debts, get a high-paying job and don’t be a spendthrift -to say a few.
However, if you got a good credit, enjoy your experience with bank loans. Because, your loans will be likely approved and banks will be more than happy to serve you.
Non-negotiable rates
You can’t exactly bargain with a bank for a lower rate. You can try. But don’t be shocked if you can’t get what you’re aiming for. Bank auto loans are known for its non-negotiable and final rate. Plus, most banks don’t offer promos like a low-down payment.
Long waiting
You can’t have your dream car here in a snap. The process takes time as they carefully review your credit history and all. They have this screening. You have to pass a lot of paperwork too and all the boring stuff.
The bottom line is it’s up to you how you deal with bank auto loans. This type of financing provides lots of good advantages: mainly, the lower rates. But, the downside is banks are notorious for being stricter when it comes to any loan application. Be prepared to meet a lot of criteria here. So, it’s best to think about this hard so you can choose the best auto loans. Best of luck with your car shopping!