Would it be best to get a loan out for a car from the dealer or buy from a private dealer and get a loan from the bank? Im currently looking at this 20002 honda accord for 11,000.
2006-09-28 06:36:19 · 7 answers · asked by bootlegcrayolas 1 in Cars & Transportation ➔ Buying & Selling
Get a bank/credit union loan, and buy from an individual.
You will lose money in profit to the dealer and you'll have to pay taxes. That's $1000 minimum, and several thousand on average.
2006-09-28 07:19:15 · answer #1 · answered by Manny 6 · 0⤊ 0⤋
It depends on the situation. Sometimes buying from a dealer (if you play your cards right) will end up being about the same (financially), if not a little less than buying from a private party. Yes - the dealer marks up the cost of the vehicle in order to make a profit, but the dealer also acquired the vehicle either as a trade-in or from an auction for a considerably lower cost. So, the sale price at the dealership shouldn't be drastically different from a private-party sale price for a comparable vehicle. If it is, they definitely have some room to bargain with you.
I'm not saying that all dealers are trustworthy or fair. I know a lot of unethical car dealers and I'd surely never recommend them to anyone. But there are also honest (yeah... amazing) dealers that will tell you up-front how much they will be making on the sale of the vehicle. BUT, don't believe everything they say. Do your homework.
On the flip side, not all private-party sales are better in value than dealer sales. You'll want to make sure to do a thorough inspection on the vehicle, make sure the license and title are legit, and the price of the vehicle is within reason. A problem with purchasing a vehicle from a private-party is that the seller usually always wants the most money possible for the car they are selling. Again, do your research and figure out how much you are willing to pay for the vehicle and then mention that to them. If they are not willing to budge on the price, it's not the end of the world. There are many, many more cars out there. Try doing a quick search on eBay to see if you can find the car you're looking for. If your search turns up hundreds of them, chances are you'll be able to easily find another one locally.
For financing, you'll probably get a better deal at the local credit union. Most of the time, the dealers go through local banks and credit unions anyway, unless you're purchasing a new car.
2006-09-28 14:22:41 · answer #2 · answered by isong 1 · 0⤊ 0⤋
If you are a used car shopper, DEFINITELY buy from private party individuals. You will save a bundle of money versus purchasing from a dealership. You will also get a better interest rate on a used car through a bank or credit union on your own versus getting a loan through the dealership. Besides, you won't have to deal with pushy, agressive sales people. You are definitely going to spend a few thousand more in the long run with the purchase cost and higher interest rate if you buy a used car from a dealership. Also, if you buy from a private party individual, they will know the history of the car better than any dealership ever would.
2006-09-28 14:18:19 · answer #3 · answered by palebeachbum 4 · 0⤊ 0⤋
go to the bank...or you may do a lot better trying a credit union, if you don't have good credit the dealer well charge you a fortune in interest.if you do have good credit you may get a better deal from the dealer...but banks have fixed rates.shop around. ask the dealer how much the car is really going to cost you in the long run,then compare it to the banks
2006-09-28 13:49:54 · answer #4 · answered by happyboy 2 · 0⤊ 0⤋
Why give a dealer $2000 for a little bit of work. Buy private.
2006-09-28 13:54:32 · answer #5 · answered by Anonymous · 1⤊ 0⤋
Why take a loan. I will sell you my Honda Accord for 3000. It is 1996, 160K but never gave me a problem, actually I never had any mechanical work done on it. Still gives 30 miles / gallon on highway. Beside oil change no maintainence.
2006-09-28 14:33:01 · answer #6 · answered by WISEMAN 3 · 0⤊ 0⤋
Get the bank loan - it will be much cheaper regardless of what the dealer tells you. You will also find that as you are now in fact a 'cash' purchaser you can play one dealership against another and negotiate a good cash discount.
However, do you realise your car won't be made for another18,000 years.................(20,002)..........
2006-09-28 14:15:22 · answer #7 · answered by thomasrobinsonantonio 7 · 0⤊ 1⤋