OneMain Financial: What is the Simplest Way to Buy a Car?

Buying a car can feel like navigating a maze with countless options, prices, and decisions to consider. Whether a person is upgrading their ride or purchasing their first vehicle, there may be a simpler way to approach the car buying process.

Below are three of the easiest ways to make buying a car a little less overwhelming.

Financing through the dealership

Most auto dealerships offer some form of financing to their customers. The reason they do this is twofold.

• It helps them to close the deal. Suppose a customer is browsing for a new vehicle and assumes that certain models are out of their price range. A car salesperson can use financing opportunities to reassure this customer that they can set them up with a low monthly payment. This can cause the shopper to make a more spontaneous decision and potentially help the salesperson make a sale.
• The dealership makes a lot of money from financing. The reason auto dealerships offer so many financing opportunities is that they have affiliate relationships with these lenders. In exchange for signing the car buyer up for a loan, the dealership will receive a kickback from a flat fee to a percentage of the loan. This heavily incentivizes the dealerships to sign up as many people for financing as possible.

While there’s nothing necessarily wrong with getting financing through the dealership, it can be limiting. Many of these lenders may have higher APRs or only offer longer-term loans. For these reasons, many shoppers will seek out financing opportunities for themselves.

Pre-approval from a lender

Vehicle shoppers who are more financially savvy and have decent credit may find it more advantageous to get pre-approved by a lender before shopping for a car. Pre-approval just means that a lender has reviewed the applicant’s credit and financial history and agrees to finance the purchase of a vehicle when they’re ready to move forward. This is a relatively simple process and usually requires nothing more than a quick credit check.

Getting pre-approved benefits buyers because it makes them less reliant on dealership financing and allows them to shop around ahead of time for better deals. Plus, some car salespeople are more motivated to work with pre-approved customers because they know they’re serious about making a purchase.

Those needing a personal loan to buy a car should consider a lender such as OneMain Financial. OneMain Financial offers fixed interest-rate loans with flexible terms, and pre-qualification can be done right from their website.

Cash purchase

As the old saying goes, nothing spends quite like cash. Many auto dealerships are happy to accept payment in full because it means a quick closing and no risk of the loan application being denied.

Of course, this also means that the buyer must have enough funds on hand (i.e., tens of thousands of dollars) to strike when ready. This may be challenging for some shoppers, so seeking out an auto loan may be a more viable option.

The Bottom Line

There are three ways to buy a car: financing through the dealership, getting pre-approved from an outside lender, and paying with cash. Shoppers interested in making a purchase should consider all three options and pick the one that best suits their current financial situation.

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About OneMain Financial

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OneMain Financial is the leader in offering nonprime customers responsible access to credit and is dedicated to improving the financial well-being of hardworking Americans.

Contact Information:
Name: Sonakshi Murze
Email: [email protected]
Job Title: Manager