Buying a minibus is a complex process, and you need to arrange the financing part of it in advance. Pre-financing is an arrangement with your bank, an online lender, or credit union to have the loan approved before you set foot on the dealership’s premises. Once your pre-financing gets passed, the lender will give you a total of how much you are expected to spend and the interest rate that you will pay on your loan. Some lenders have appointed dealers, so you need to check out if the dealership you intend to buy your car from is on their list.
Benefits of Pre-Financing
There are many reasons pre-financing is a good option and why one should go for it. Pre-financing:
Encourages You to Stick to a Specific Budget
Since you know how much to expect from your loan, you will know exactly how much to spend. You only need to remember to account for the taxes and other fees; thus you will have to shop for a car that is worth a little less than your pre-approved amount.
Makes Negotiations a Lot Easier
You can shop for a mini coach as if you already have the check in your pocket. This enables you to stay focused on the actual price of the van instead of being bothered by the interest rate, down payment or the loan term. In other words, you may walk into a dealership and ask “what is the out-the-door price of this car.
Saves You Time Looking for Finance and Insurance
Most car buyers dread the finance and insurance office due to the time it takes to have a deal completed. While some of the delays at the finance office are unavoidable, having a pre-approved plan will reduce the amount of time you will spend at the insurer office hence making the buying process simpler and faster.
Lowers the Risk of Spot Delivery Complications
Some dealers will allow a consumer with a tainted credit score to take possession of the car even when the financing is not yet complete. A couple of days later, the customer gets a call from the dealer saying that loan was not approved and that he or she has to bring back the car or re-apply for a new loan. Even more depressing, the new loan arrangement may come with a bigger down payment. However, with a pre-financing agreement, such scenarios are merely nonexistent.
Remember to Shop Around for the Best Financing Deal
Don’t just stick to the first lender who comes your way. See, when scouting for a mini coach, you want to get a good deal and by extension, value for your money. Keep in mind that you will to repay the funds and abide by the terms and conditions of the loan. In other words, no dealer or lender is doing you any favor by giving you the cash. You should, therefore, go for the best pre-financing deal you can get on the market. Get quotations and compare them side by side before making the final decision.