is it better to get a loan from bank to buy a used car from dealer or use dealer's finance plan?

Question

assuming i may need to sell this used car in 6 months and want to minimize my loss.

what will i loose (penalty fees for earlier loan/plan termination, taxes, insurance, etc ) if i go for a £6k used car?

Answer 1

Use a bank!

If you use a dealership's payment plan, if you are late on a payment by two days, they may be able to repossess the car!

Answer 2

Banks are far better ! if you have a good credit history with your bank then use them. The dealer finance has hidden costing so that the dealer makes a commission from you choosing there finance package. The dealer will make a larger total sale profit from there finance package. Use the banks money and you will be able to get a better deal from the car seller as you have the hard cash in your hand. Demand as many extras, like floor mats, full tank of gas, first service free and a hamper with wine or a bottle of champagne. This may sound very demanding but i assure it works. If the salesman says no dont be afraid to walk way, I'm sure there are many other places that sell the same car and will love to take your money and provide a few little extra for a cash sale. The banks total interest is safer and if you do get into trouble the banks are better to deal with and to refinance through. If you need to sell the car its easy if its bought on a bank loan, its VERY HARD ! to sell a car that's on finance as its on a HPI register and the car remains the property of the finance company even if you sell it to someone else.. so people do not buy cars that are owing finance. Happy buying.

Answer 3

If you buy using finance from the dealer then you cannot sell until you've paid them off. They legally own the car until final payment is made.

If you may need to sell in a short period either buy using a bank loan or better still buy a car you can afford to buy outright.

Answer 4

Get a preapproved loan from the bank, for a car of a specific value, the car you want. Then go buy the car, if the dealer gives you better loan, use theirs, else use the banks.

Ensure the specifics of the loan are simple interest with no early termination penalties, for the bank loan, then make certain the car loan is better, if you think it's better.

Answer 5

Just go for a normal bank loan, dont say what its for, if you go down the dealers finance route it will be higher interest and you cant sell car till it is paid.

Answer 6

why do you want to buy a car that you need a loan for,there's plenty of used cars for sale that you could buy out right selling back six months later on the open market,think to your self that you'll be saving money to spend on your self not a bank or dealership

Answer 7

You need to compare the interest rates and fees each one offers. A loan Broker would likely be able to help you find a good deal better than just going to your bank.

Answer 8

if you get the same rate from both, take the dealers. because if the car has problems after you buy, you can stop payments and settle it in court. you cant do that with a bank loan, they dont care. research "consumer credit transactions" if you want to learn more.

Answer 9

Its better to get the loan from the bank because the bank is only going to give you the amount of money you need. the dealership is going to try to make a proffit off of you by holding points or raising the rate. So please stay with the bank.

Answer 10

bank alway bnk not dealer of finance companys too high interest better the devil you know