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Get in the Driver’s Seat With an Auto Loan: Five Benefits of Using A Local Lender to Finance your New Car!

November 23, 2020

Whether you want to reward yourself with the sleekest new automobile or just need a reliable vehicle to transport your family to their daily activities, a car is an important purchase. Reviewing makes and models, test driving, negotiating with dealers to get the best price and signing all the paperwork, can be exhausting.

Obtaining an auto loan pre-approval letter from a local lender before you go shopping, can help cut your stress in half! 

Talking with a local banker about financing your auto loan is helpful because they can give you the advice you need and the payment you want, before you ever step foot on a dealership lot.

Here are five benefits to financing your car with a local lender:

1. They can talk you through the various program options.

It is tempting to immediately accept the lowest monthly payment, but this often comes with an excessively long loan term, which might outlast the “useful life” of your car. A local banker will sit down and help you review all of the options and explain what they mean in terms of how long you will be paying for the car and how that correlates with the resale value of certain makes and models. They can discuss your financial goals and help you choose the plan or program that best align with these goals.

2. You can resolve credit issues or explain blemishes.

Lenders use your credit history and score to gauge how likely you are to re-pay your entire loan. Sometimes, there are logical explanations for blemishes or unpaid debt that appear on your credit profile. While a local banker must still follow the rules concerning credit criteria, they are able to discuss and review the full picture. The ability to sit down and walk through the details with someone not only works in your favor but will also reduce the stress felt the day of purchasing your car. It takes the focus off your credit and puts it back on finding the vehicle of your dreams.

3. They can discuss how to get a better rate.

The best rates are reserved for those with excellent credit, as discussed above. If you are working to build your credit or have blemishes that cannot be justified, a local lender can present options that may help you receive a lower rate in the future. In addition, they might suggest you take some time to save for a bigger down payment which will make a difference in your payment amount.

4. They might offer special services like payment protection.

Life moves fast, and you never know when you might face something unexpected. That is why every driver should have adequate car and payment protection insurance protecting you and your vehicle. Products like Debt Protection, Guaranteed Asset Protection (GAP) or Mechanical Breakdown Protection (MBP) are all loan protection products offered outside of standard car insurance. Taking the time to talk through options with a local lender, will help you be prepared for the unexpected, without feeling like you are being forced to accept a product you do not need.

5. They could be able to offer you better pricing by working with local dealers.

Local lenders often partner with local dealerships to provide the best service through each step of the auto buying process.  Valley Strong is proud of the relationships it has built throughout the Valley, allowing our Members to receive top-tier pricing and service. Visit any of our local dealers to find out more.

Whether you are interested in a lease buyout, a purchase or a refinance, Valley Strong has a competitive auto loan program that will work for you. Stop by any of our conveniently located branches or apply online today to begin the pre-approval process.