Is it better to finance your car through a bank or through the dealership itself?
2006-10-03 06:36:10 · 14 answers · asked by LG 1 in Cars & Transportation ➔ Buying & Selling
i would finance it through a bank
2006-10-03 06:39:52 · answer #1 · answered by Anonymous · 0⤊ 0⤋
A lot depends on your credit. If you have good credit then shop your interest rate at the bank and the dealership. The dealer gets a discounted rate from the bank and sometimes will pass it on to you. For example... The local bank tells you 7% and he tells the dealer 5%. The dealer will contract you at 6 or 6.5%. You save a little on interest and the dealer makes a percentage. Remember this, EVERYTHING is negotiable. If you do your homework you can make an excellent deal.
2006-10-03 10:07:43 · answer #2 · answered by DAVID S 2 · 0⤊ 0⤋
Honestly a credit union would most likely give you the best interest rate. If you already have an account at a credit union you probably have a history with them which is good because it shows them they can trust you resulting in them giving you the loan. Banks normally have higher interest rates than credit unions. The dealer will give you a rate from a bank normally and it is not always the best one so you need to research it yourself. Of course the dealership is going to tell you they have great rates and you don't have to believe them! They just want a sale.
2006-10-03 06:49:08 · answer #3 · answered by Anna 4 · 0⤊ 0⤋
You should at least get a quote from a bank, credit union, or other financer before going to the dealership. Give the dealer the opportunity to beat your current rate.
If you are approved by Capital One Auto Finance, you'll receive a blank check that you can use to purchase your vehicle.
2006-10-03 06:38:12 · answer #4 · answered by trigam41 4 · 1⤊ 1⤋
Finance with dealer if:
1. The manufacturer is offering a special low rate.
2. The dealer will beat your bank's rate.
3. You can't get financing anywhere else.
2006-10-03 09:59:41 · answer #5 · answered by Anonymous · 0⤊ 0⤋
I don't think there's any big difference. Perhaps the only one would be the percentage rates.
I had a loan through my credit union. It was convienent, and I could pay multiple months at a time and not owe until multiple months later.
Also, the credit union people are always there in person to talk to. When you bank with the dealership, you never really know who you're talking to.
2006-10-03 06:40:37 · answer #6 · answered by mktobyjo 3 · 0⤊ 1⤋
Try local bank or credit union. Dealerships don't always have best finance offers.
2006-10-03 06:39:45 · answer #7 · answered by Anonymous · 0⤊ 0⤋
It depends when I bought my truck the dealership got me approved through a bank because the bank had a better interest rate than ford motor company could. but my vehicle was used it may be different if you are buying new.
2006-10-03 06:38:24 · answer #8 · answered by just me 2 · 0⤊ 0⤋
Before I got my last car I got two bank quotes and then the dealer somehow was able to find a better rate so I went with the dealer. Thats using the old noggin I think.
2006-10-03 06:38:41 · answer #9 · answered by Anonymous · 2⤊ 0⤋
Credit Union. If you finance thru dealer then they make more money on that and they should come down on the price of the car some.
2006-10-03 06:38:02 · answer #10 · answered by missourim43 6 · 2⤊ 0⤋