Want the best Pennsylvania car loan? Read on!
Headed to the that Philly dealership this weekend? Want to get a fair deal on your Pennsylvania car loan? While everyone knows they should check their credit score and shop for the best loan in advance, what other things should you keep in mind when taking out a Pennsylvania auto loan?
Lenders, generally, do not require GAP or warranty coverage. These products can have significant value and should be considered as part of your auto purchase. Further, any F&I manager worth his salt will explain the benefits and will not be offended if you don’t value them. However, should a dealer tell you that getting these types of coverage is required for your Philadelphia auto loan, don’t take their word for it… ask the lender yourself. If is extremely rare for Pennsylvania auto lender to mandate inclusion of service contracts or other products.
While getting “cut back” is a common, lenders have little input on price. Getting “cut back’ means that after reviewing your credit application a lender has approved your Pennsylvania car loan for a lesser amount. While this is common, lenders do not set or even influence a car’s retail price. So, if a dealer tells you “this lender only approves deals at full sticker”, your response should be… “give me their phone number and I’ll check it out”.
Know your approved rate. Dealers make profit on a car sale “front” and “back”. The “front” profit comes from markup on the vehicle itself. This source of profit has declined over the years as buyers have better access to dealer invoice pricing. “Backend” profits come from the F&I office and typically include margin on the auto loan, extended warranty and other products. When dealers originate Pennsylvania auto loans they commonly take the rate offered by the lender and mark it up as a sort of commission. For example your approved Philadelphia auto loan rate (the amount the lender expects you to pay) may be 6% but the dealer may get you give you forms showing 7%. That 1% difference goes to the dealer as compensation. The best way to ensure this markup is fair, is to know at what rate you have been approved by other Philadelphia auto lenders by shopping around in advance.
So now you’re ready to head down to that dealership with a bit more information. Whether it’s a Philadelphia auto loan, a Pittsburg auto loan or an auto loan from any other Philadelphia city or tow, we recommend you submit SmartCarCredit’s easy loan quote request form. It will take you less than a minute and could save you hundreds of dollars!
Need help running the numbers on your Pennsylvania car loan?
Know your Pennsylvania car loan principle amount: Use our Pennsylvania Car Loan Calculator
Know your Pennsylvania car loan payment amount: Try our Pennsylvania Car Payment Calculator
Know your Pennsylvania car loan rate: Try our Pennsylvania Car Loan Rate Estimator Disclosure: We developed the content for SmartCarCredit™ while working with automotive industry clients. We hope you find it helpful in making informed decisions. While we believe the information to be accurate, we do not guarantee its accuracy.
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