If you are working as an Uber, Door Dash, or thinking about buying a vehicle for your sideline business, you will need to spend some time immersing yourself in the world of auto finance.
Our Vineland auto loans team has done all of the legwork so you will have the information you need to make the most of your time and resources.
What type of vehicle do you require?
You need a new car, that is a given but what type? Are you going to be delivering bulky packages while traveling long distances or will you be dropping off food deliveries within a small geographic area?
We are not trying to pepper you with questions but your answers will influence the type of vehicle you buy and how much you end up paying in the long run.
Speaking of paying, have you thought about getting an all-electric vehicle (EV)? Gasoline prices are rising and will soon reach the $2.00/liter level. If you are concerned about fuel prices eating into your profit margin, then you should think about getting an all-electric.
While the technology is relatively new, the world is pivoting away from fossil fuels and it is just a matter of time before we all need to make the switch.
The reason we asked you to think about the type of car you are buying, is the impact it has on your financing options. If you are buying an EV, the initial upfront cost is higher than a conventional gasoline vehicle even with government subsidies but you will save over the life of the vehicle.
A challenge that is associated with the purchase of EVs is that the sheer number of lenders (while growing) is not as vast as those for gas-powered cars.
Lining up financing
Since you are running a business, it would be in your best interest to speak with a local dealership and find out what options are available to you.
The dealership may have access to preferential pricing and rebates that will help reduce the total amount you end up paying for the car.
Along with helping you find the vehicle that is going to meet your business needs, the dealership can get you a very competitive deal.
These dealerships have a large network of lenders they work with and can find the lender who is going to give you the best deal.
Your credit score is going to play a huge role in whether you can get the Vineland auto loan approved. The lender is more apprehensive about lending to someone who is going to use the vehicle for their work, so you may need a higher credit score than usual to get prime rates.
You still can get the loan approved, but the lender may raise the interest rate by a few basis points to mitigate the added risk.
The good news is you can get the vehicle you need for your business but the only way you can do it effectively is to seek out a local dealership and get the professional help you deserve.
For those of you who know that you have a challenging credit situation, please visit Dixie Auto Loans where we have a team of credit specialists ready to help you get approved for a car loan today!
For any questions or concerns, please don’t hesitate to contact us here!