Closing the car finance deal with the finance company can be difficult for some people. A captive finance company—which is a subsidiary company of a larger corporation—can sometimes offer better car loan rates than other traditional loan companies; however, when it comes to taking out an auto loan, it’s always wise to check the pros and cons of all your options. Often, captive finance companies don’t need to borrow the money they lend; thus, they can offer lower car loan rates than other types of loan companies.
There’s not much guesswork involved when working with captive finance companies; typically, you go into the deal knowing you’ll get the standard car loan according to your credit risk (which is based on your credit history ). Captive finance companies can also offer better car loan rates to buyers with poor or average credit because there’s a decreased risk in loaning money for their own products (the vehicles). Unlike other types of lenders, such as banks and credit unions , captive finance companies provide both the loan and purchase processes in one convenient sitting.
When you finance an auto loan through a dealership, bank, or credit union, you can sit down with a representative and hash out the deal; however, with a captive finance company, you’re working with the company from a distance. Because it’s easier for captive finance companies to offer loans to buyers with poor credit, it’s easier for buyers to agree to loans they can’t reasonably afford. A dealership salesperson working with captive finance companies can jack up car costs with unnecessary extras because they make commission on the vehicles they sell.
Now that you’re armed with the pros and cons of working with a captive finance company, it’s easier to determine whether or not it’s right for you. However, there’s one more tip to consider: Before you head to the dealership, visit other loan companies like your bank or credit union Shop around with several lenders and see what kinds of car loan rates you can get. Once you have a few offers, then visit the dealership and see what the captive finance companies have to offer you. There are no formal educational requirements for this career, although a bachelor’s degree in finance or a related field is always preferred.
Gathering car loan rates from all possible lenders, including captive finance companies, will help you find the best auto loan with the most reasonable car loan rates for you. In this article you will find outlines of available finance careers, including potential paths for advancement, general salary information and educational requirements. If you do not have a 4-year degree under your belt just yet, there is a section towards the end, which covers finance careers with flexible educational requirements. Financial services brokers analyze companies offering stocks and advise clients on investment strategies.