Usually the best place to look is one’s own bank. Because the consumer has already established a relationship over time with his/her bank, s/he is more likely to get a better deal on auto financing. However, relationship or not, remember to check their overall car loan cost and rates.
Another place to check is credit unions. Because most credit unions have low operating costs they are more likely to have lower interest rates on their loans as a result. However, one may have to be a member to gain access to their loans.
For consumers who are already home owners, one another option could be to take out a home equity loan then use the money to buy a car. Again, this option has even lower interest rates and a consumer could get an even rate than on a direct loan. However, home equity loans secure your loan together with your home. If you default on your car loan you might lose your home.
Other sources include online banking sources and reputable online lenders. These too may have offers that can in the long run save on your overall automobile purchase.
When considering an option, it is crucial for the consumer to take the information s/he receives to the car dealership and use it to compare with financing offer from the dealer. Usually with banks and credit unions, a consumer will be given advice on the details of the car loan, the kind of price they can afford given their income and on whether the quoted dealerships price is a good one or a rip off.
The consumer just has to listen keenly and ensure that the option they decide to go for is offering is a good deal without any “fine print”. If no other auto financing deal can beat their offer, then go for it.
- Auto Financing Versus Car Leasing
- Applying For A Car Loan – What To Look For
- Save Money On Your Car Loan
- Why You Are Only Able To Find An Expensive Car Loan
Tags: Car Loan