Are New Car Finance Options Helpful?
It is always good to have options. The more options that one has with something like car finance, the more freedom they have. Everyone is in different points in their life and in their financial situation. Therefore, there should be car finance options for just about any circumstance.
The latest option to hit the car finance market is something known as an 84 month loan. That is seven years worth of having a loan around, but it also means a smaller loan payment on a monthly basis.
As it turns out, the 84 month loan is something that has fewer people defaulting on than do the 72 month loans. The lower payments may make it easier for some to actually make those payments. That could be good for a person who has struggled in the past to make the kind of car finance payments that they need to. Some may complain that this is too long to have a loan out for, but they are not the ones in your situation.
The beautiful thing about this type of Car Finance Stratton is that those who have lower credit scores can use an 84 month loan to get the type of car that they really want. There is no need for them to settle on a lesser car just because their credit score needs some work. Instead, it is possible to get exactly the kind of car you want for a monthly payment that is within your budget.
Car finance used to require a lot of hand wringing and stress. These days a lot of the dealerships are able to do their own financing in house. Some of the dealerships are experimenting with the 84 month loan for customers who may not qualify for other types of loans.
This type of car finance is something that benefits the car dealerships as well. They like it because it means that they have a rotating basis of income. In years past one might trade in a vehicle that they already owned in order to get something that was newer. It might have been a good deal for the consumer, but the dealerships were taking it on the chin. They wanted to have more car finance deals.
The 84 month loan is something that locks in profits for seven years in most cases. Customers have the option to pay more on their loan as time goes on if they want to, but most will just pay the minimum that is required of them. This is the new system as it works for both customers and dealerships. Car finance is moving in this direction and the best that we can all do is learn as much as we can about it.