Why Bad Credit Car Loans From Dealerships are the Best Option

Why Bad Credit Car Loans From Dealerships are the Best Option

Posted on October 11, 2022

You’ve seen the advertisements offering you the ability to buy a used car right from your living room. While the thought of being able to buy a new car without having to leave your home seems appealing on paper, there are some significant issues that you need to bear in mind. Here's why we think bad credit car loans from dealerships are the best option in Canada.

Risks Associated With Not Going to the Dealership

There have been numerous reports of major companies having their customer payment and personal information compromised by hackers.

If you apply online for a car loan, no matter how secure the website may be, there is a risk that your personal information could end up in the hands of identity thieves.

Once you post your information on the Internet, it is there forever!

Identity theft rate over the years. Source: https://www.statista.com/statistics/544904/identity-theft-rate-canada/

Even if you could guarantee 100% security when applying for a car loan online, it still doesn’t mean you are going to have access to the most preferential terms.

While the websites advertising these car loans claim to have the best deals around, they can only access retail interest rates being offered by lenders.

There are wholesale interest rates available, but you need to know the proper channel to access them (we will explain this step a little bit later).

What Is the Condition of the Vehicle Being Sold Online?

There are services like CarFax that will let you know if the vehicle was in an accident or has any reported mechanical issues.

CarFax example

But, this service is not 100% guaranteed to be accurate, so when you buy a used car online, you don’t know whether the vehicle is actually in roadworthy condition.

This is especially concerning when buying used cars that are imported from the USA.

Even if the online retailer had a perfect reputation with fake reviews, there is no way of knowing whether you are getting the straight goods.

Making the Case to Buy Your Used Car Locally

We mentioned being able to access wholesale interest rates when buying a car; the only viable path to accessing those rates is with the help of bad credit car loans from dealerships.

These dealerships are part of an exclusive network with lenders that provide car loans.

The loan providers want to increase market share and know that these dealerships are the best source of new business.

These lenders offer preferential interest rates to attract dealerships that no one else can access.

Dealership best lenders

These same local dealerships have vehicles that you can test drive and determine which car is the right one for you.

While some online car sellers offer test drives, it comes with a long list of terms and conditions.

When you go through a local car dealership, you are helping support your local economy, and when your vehicle needs service, you can bring it to the same dealership you purchased the car.

There is no denying that online shopping is convenient and saves time, but when it comes to making a major purchase like buying a car, you should always do it locally and in person.

We will use all our skill and experience to deliver the lowest possible bad credit car loans from dealerships, guaranteed. Contact Car Nation Canada Direct to learn how we can help.