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Everyone loves driving home in a brand-new vehicle, but ironing out the financial side of things is something nobody looks forward to. You’re met with several options when wanting to purchase a vehicle. This can include taking out a line of credit through a bank or independent lender. However, many choose to have the entire process made easy for you, through our dealership financing department and focused auto loans. There’s a reason our finance centre exists, because it’s specifically situated to negotiate the best rates and terms for your vehicle, helped along by long-standing relationships with the major banks. A line of credit is helpful in a lot of areas, but purchasing a vehicle is not one of them. Read on below and learn what is involved in each of these methods, and why purchasing a vehicle with dealership financing is the best way to buy.


Purchasing a Vehicle with Dealership Financing


When you purchase a vehicle at a dealership such as ours and utilize the strengths of our dealership financing team, you have a staff of experienced financial experts at the ready who have years working specifically with auto loans, and who maintain relationships with major banks. This allows you to be able to get fantastic rates and terms that are flexible to your needs and budget. There’s no reason to overpay or to be unsure of how much you may be paying on your next vehicle. This is the risk that is run taking out a line of credit. Dealership financing was built for your automotive purchase, so you can get the best value.


Purchasing a Vehicle with a Line of Credit


A line of credit is a variable loan from a bank that exists as an amount of money that you have access to as you need it, where you then have to repay it over time, and be charged interest on the money once borrowed. Because of the variable interest rate, it is often unknown how much this money that you borrowed will cost you in the end. Thus, lines of credit aren’t meant for one-off purchases like a car, that’s why specific auto loans exist. Instead, they’re best for people who have a wide-ranging income or expenses from month-to-month, to help shoulder any abnormalities when you may be unsure of how much money may be needed each month.



Why You Should Use Dealership Financing Vs. a Line of Credit


There are a few reasons why you should utilize our dealership financing methods over using a line of credit. A line of credit should really be only used in an emergency, as a lifeline when you need it most, not when you have other more suitable options in its place. As well, it’s a specific type of loan that isn’t primed for automotive. Explore below the reasons against using a line of credit, and why you should utilize our Southside Dodge dealership financing team instead.


  • Interest Rates Can Fluctuate, Equalling Higher Payments: Your payments aren’t static given the variable payment nature, so you won’t know your direct interest and terms, unlike dealership financing.
  • Your Line of Credit May Be Secured: Many lines of credit are secured, and will be tied to your house, which acts as a second mortgage. This invites the possibility of the bank being able to repossess your home in a worst case scenario.
  • A Line of Credit is a Last Resort: Lines of credit should really only be used when absolutely needed, like in an emergency when you need money right away, and know you’ll be able to pay it off.
  • Line of Credit isn’t Built for Vehicle Purchases: A line of credit is a more generalized way of borrowing money, and isn’t specific to the world of automotive. It’s not built for buying a vehicle, whereas that’s exactly what focused auto loans were made for.
  • Dealership Financing Comes with a Team Who Will Assist: Using a dealership financing team means having a department working for your exact needs, and able to tailor terms and rates specific to your vehicle purchase.


Financing a Vehicle at Southside Dodge


The process of financing a vehicle here at Southside Dodge is made easy. Get the ball rolling online by filling out our credit application form. From there we’ll work to get you approved and on your way to a Dodge, Chrysler, Jeep or Ram that you truly want, and on rates and terms that work within your monthly budget. Our financing department is staffed with seasoned professionals who have years of specific automotive financing experience to help you with whatever question you may have, or whatever credit background you come from. Good credit, okay credit, or bad credit, it doesn’t matter to us. Contact us, today, and we’ll help build you a plan for your next vehicle!



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Categories: Financing