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Manufacturer Financing for New Cars

When planning to purchase a new car, and after reading plenty of car reviews, you will need to consider what your options are for financing. While you may have already secured pre-approval from your bank or credit union, a lot of drivers don't go into the purchase of a new car with financing already taken care of. As such, you're going to need to consider what will be available to you when you need to purchase your new vehicle. One option open to you will be manufacturer financing.

Although many drivers are not aware of it, most manufacturers have their own financing companies that can help drivers get into a new vehicle. If you haven't shopped around for financing before you reach the dealer, then this is usually the type of financing that you are going to be offered. As such, you need to be aware of what potential rates you might end up paying for going with the financing offered by a manufacturer rather than going with financing that you secure on your own. In some cases, you can get a great deal, but in others you might not.

The Rules of Manufacturer Financing

Getting financing from a manufacturer may be a great way to secure a loan for a new vehicle, but it's not always going to be the best way to go about things. You should certainly consider it as an option, but you need to take the time to compare some of your others and see what they really are. When you are financing a new car, your goal is going to be to get the best rates possible, and sometimes your manufacturer will not be able to offer this. Before you decide, consider some of the rules of manufacturer financing.

One thing that you need to be aware of when you're offered manufacturer's financing is that you usually have to qualify to get some of the low rates that they are advertising. In a lot of cases, you're going to need to have a really good credit score to get the rates that have been advertised. If your credit is not great, then you could end up paying a really high interest rate on a loan from your manufacturer. Make sure that you look in the fine print before you decide to get a manufacturer loan.

Another thing that you need to look into before you can decide on a manufacturer financing loan is how long the interest rate is going to be good for. Sometimes, manufacturers will offer really low rates on a loan, but they will only do so for a short period of time. After that time is over, then you're likely to have to pay a lot more in interest, and this can really increase the price of your vehicle Don't fall into these traps when you are looking for vehicle financing.

Choosing the Best Financing

What's really best for you to do is to look at your financing options before you even go to the dealer. If you are careful and try to get the best rates on your own, then you won't have a need for manufacturer financing for new cars. Instead, you'll be able to pick out the best deal on your own, and you wont' have to worry about falling into traps that will cost you more money later on. It's in your best interest to choose some financing on your own before you start to speak with a dealer. That way, you can really have some control over the purchase.


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