Whether you’re purchasing a new or used car, most people will seek financing for a vehicle at some point in their lives. With prices upwards of $20 thousand dollars, finance options allow you to spread this lump sum over a longer period of time, allowing you to make repayments on the vehicle in regular instalments.

The most common form of financing option is direct lending. Direct lending is a contractual agreement that is held between a borrower and a lending provider such as a bank or credit union. In direct lending, the buyer agrees to pay the amount borrowed at an agreed interest rate over a period of time back to the lender. Once a loan has been obtained using direct lending, the borrower is then able to purchase a vehicle from the car dealership, using the proceeds from the loan to pay off the car. This process is often a long and complicated one.

‘Dealership financing’ cuts out the middle man by allowing the buyer to finance their vehicle with the car dealership directly. In this arrangement, the buyer enters into a contract with the car dealership, rather than with an intermediate such as a bank. All financial and contractual agreements in dealership financing are similar to direct lending options. The buyer enters into a contract to pay the amount financed, at a pre-determined interest rate, over the period of the loan. However dealership financing is different to direct lending as it serves to reduce the amount of go-between amongst various banks and the financial intermediaries.

Barton’s Mitsubishi is a reputable Brisbane car dealer that provides its customers with a range of dealership financing options. If you’re in the market to buy a new, used or demonstrator Mitsubishi, Barton’s Mitsubishi can tailor a finance package to suit you. Their customer base approach to financing recognizes that no two person’s finance requirements are the same. So whether you’re buying a car for business or pleasure, contact Barton’s Mitsubishi today to sort out your vehicle financing. Other advantages to using dealership financing over direct lending is the interest rate options. Car dealers often maintain relationships with multiple financial institutions meaning they can offer buyers a wide range of financing options that are unique to their specific loan requirements. In addition to a range of interest rate and loan options many car dealerships offer their customers’ manufacturer sponsored low rate programs, which makes the cost of financing a car even cheaper.