At Redwater Dodge, we believe everyone deserves to drive a vehicle they love, regardless of their credit history. Inspired by the continued success of We Approve Auto Loans, we have compiled this comprehensive resource to help you navigate the complexities of automotive financing. Whether you are a first-time buyer or looking to rebuild your credit, our goal is to provide transparency and clarity.
Dealership vs. Bank: Where Should You Finance?
One of the most frequent questions we hear is: “Should I get my auto loan through my bank or the dealership?” While your local bank branch is a familiar face, dealerships often have a distinct advantage.
As a high-volume Chrysler, Dodge, Jeep and Ram dealer, we have the unique ability to buy down the bank’s interest rates. Because we send a significant volume of business to various lenders, they provide us with preferred rates that aren’t typically available to individual walk-in customers. When you finance through the dealership in Redwater, Alberta, we leverage these relationships to secure a rate that is often lower than what you could get on your own, saving you money over the life of your loan.
The Truth About Long-Term Financing (84 & 96 Months)
Many shoppers worry about the length of their loan, asking: “Is an 84-month or 96-month term a bad idea?” The short answer is: Not at all. In fact, for many of our customers, it is the smartest move for their monthly budget.
By opting for a longer term, such as 84 or 96 months, you achieve two critical goals:
- Lowest Possible Payments: You spread the cost of the vehicle over a longer period, ensuring your monthly obligation remains manageable.
- Credit Strengthening: A car loan is a major tradeline on your credit report. By maintaining a long-term, consistent payment history on a 96-month term, you are continuously demonstrating reliability to credit bureaus, which is the fastest way to “level up” a tough credit score.
Understanding the Total Cost of Borrowing
Transparency is our priority. We want you to understand exactly what you are paying for. The Total Cost of Borrowing is essentially the sum of all interest payments you will make over the life of the loan.
How to calculate it: Imagine you finance a vehicle for 8 years (96 months) at a 10% interest rate. If your total interest paid at the end of that term equals $5,000, that $5,000 is your total cost of borrowing. It is the “fee” paid to the lender for the convenience of using their money to buy your car today. We make this “nice and easy” to understand by providing a full disclosure of these figures before you ever sign a contract.
We Approve: Helping Tough Credit Situations
Our auto loan application is specifically designed for folks struggling with credit challenges. If you’ve been turned down elsewhere, don’t be discouraged. We work with a vast network of lenders specializing in Rig Ready Approvals. We don’t just look at a number; we look at your potential.
Relevant Frequently Asked Questions
A. Yes! If you take a longer term now to rebuild your credit, you can often refinance for a lower rate after 12–24 months of on-time payments.
A2. Typically, you’ll need proof of income (pay stubs), a valid driver’s license, and proof of insurance.
A3. Absolutely. A trade-in acts as a down payment, reducing the principal amount you need to borrow, which in turn reduces the total interest you will pay.