One of the most popular ways to get financing for a car these days is through GMAC loans. It’s one of the largest providers of auto dealer loans, so it figures that many different people would be able to get a loan through them. The biggest question has to do with the advantages and the disadvantages of using a captive finance company like GMAC. What are the pros and cons of GMAC auto finance? Here are a few to keep in mind when considering new car loans from them.
One of the biggest pros of GMAC loans has to do with the value of ownership. Owning your automobile, rather than leasing it, is a good thing because it gives you options. It provides you with the ability to sell that car any time you would like, and it gives you a chance to make necessary improvements to the vehicle without having to worry about the car’s owner and their restrictions. With ownership also comes the ability to use the car as collateral or leverage for other loans, which can be valuable to people in business or people who have alternative financing needs.
Another advantage of using GMAC auto finance options is that there are no mileage restrictions or anything of the sort. When you lease a vehicle, you have to worry about how many miles are being put on the car, and that’s never a good thing. When you own the car through your GMAC loan, you can pretty much take it anywhere you want to, without the worries that go along with mileage limits and penalties.
GMAC loans are good because they are relatively easy. You can fill out the paperwork right at your dealership and they will handle the rest. It cuts out the middle man, so you don’t have to go around and work with a bunch of different banks or credit unions in order to get the financing done.
There are some disadvantages to using this sort of financing, as well. The most pronounced of these is that the loan is going to cost a little bit more than it might if you worked with a credit union or a private bank. Because the auto dealership is going to sell your loan to a bank, there will be two different companies taking out finance fees, and that’s never a benefit for you. Better deals are available through banks in most instances, so that has to be on your mind when deciding whether these new car loans or used car loans are the best option for your bottom line.
Ultimately, there are many pros and only a few cons to going with these loans. If you want comfort over price, then this sort of financing is right up your alley. If cost considerations are your absolute sticking point, then you might be better off looking somewhere else in order to make it happen.