For many people, buying a vehicle is one of the biggest investments they’ll make, second only to buying a house.
Most car buyers need a loan to pay for their purchase, so it’s important to come to the dealership prepared, finance managers say.
Preparation is key
“Preparation is important for customers, especially if they have credit concerns,” said Arron Grau, Grainger Nissan of Anderson Finance Manager. “When they bring things like pay stubs, proof of residence, utility bills and things that the bank will ask for, it allows us to present the bank with the best scenario up front so we can get approval pretty easily.”
Grainger Nissan has several dozen lenders to choose from, creating customized proposals for customers based on considerations like budget and how long a customer plans to keep the car. Financing can also include options that protect the investment such as additional service contracts for future maintenance and repairs.
Gap insurance an important consideration
One consideration that has become more important in recent years is gap insurance, a policy that protects the loan should an accident lead to the vehicle being totaled, according to Grua. While gap insurance is not required, it makes sense especially when financing most of the cost of a vehicle.
“A lot of times the insurance company doesn’t pay off the loan (when a car is totaled), so gap insurance is really important for customers to be protected financially from having to come out of their pocket with thousands of dollars to finish paying off a loan for a car they no longer have,” Gnau said.
Pre-paid maintenance is a popular option
Many customers also opt to have the future costs of maintenance such as oil changes and tire rotations included in their financing package, Grua said.
“Part of the value of having these coverage options included is financial consistency,” he said. “If something unexpected happens or if something that is scheduled, like a maintenance service, your expense for your car that month is always the same.”
While Grainger Nissan of Anderson offers in-house financing options, customers are free to secure their own financing from their banks or credit unions.
“What we like to do is to show (customers) the best that we can offer them so that they can compare and decide which is the best way to go,” Gnau said. “Sometimes a credit union will have something available that we don’t have and sometimes we’ll be able to offer them specials from Nissan where there is zero-percent financing.”
For more information, visit GraingerNissanofAnderson.com.
