On the Spot Financing: What Does It Mean And What Does It Mean For You?

On the spot financing is a type of loan service available at many new and used car dealerships. Some dealerships specialize in, and strictly operate through this service. It’s a fast, easy and convenient way to get financed for a vehicle.Here’s how it works. Instead of a bank giving you a loan for a car, the actual car dealership will finance the loan to you. Your dealer representative will give you final approval “on-the-spot” for your car financing. Then, you get to drive your new car home. This service is meant for, but is not limited to, people who have bad credit or have no credit at all.If an applicant’s credit is low enough that a bank or car dealership denies their loan request, an on the spot financing dealership is there to pick up the slack. They function with the understanding that your credit is sub-par. In fact, you’re the kind of customer that they want to help! No need to hide it from these guys. While they do have a pretty thorough approval process, they will work with you and do their best to get you a vehicle. The in-depth process is actually a good thing. It’s designed to make sure the customer doesn’t get into any trouble with their payments and it results in a payment plan that works for everyone. So it’s best to be honest during the whole process. You’ll benefit from it.On the spot financing dealerships truly want to help you, and if they can’t, they want you to help them help you. Get it? For example, if they review your monthly budget and determine that you spend too much money on soda, they may say, “Cut back on the soda spending, come back in a few months, show us your new budget and we may approve you for the loan.” Although the process may be a little more involved, if you need a vehicle, it’s well worth it. And depending on your financial situation, you can actually get approved rather quickly. One great dealership in particular proudly states that, “Most people who come to our store can get approved in about an hour!” Sometimes the length of the approval process may vary depending on your financial situation, but on average, you could get approved in an hour.If you’ve been turned down for a car loan before, on the spot financing is a fantastic alternative.