Financing a car?

[JC Denton]

Numerous options exist to assist in purchasing a vehicles - lease arrangements, bank loan, dealer financing and so on. Use the computer and other resources to complete a chart that would allow you to make the following comparisons. The following factors need to be considered in making a decision about purchasing a car:
(e.g.,price, interest rate, mileage rate, maintenance needs, insurance)
With these factors in mind, use whatever resources you can to make the following comparisons.
1. For the same vehicle - credit through the dealer, or loan through your bank.

 

[Knight-Dragon]

In this part of the world, even credit thru dealer means loan with a bank. Car dealers don't put out credit for cars, due to the high pricing for cars here (due to import taxes, ownership tax etc)...

 

[Tassadar]

If you are in north america, credit through the dealer can be very low, even 0 % for 5 year. You just have to wait for the deal, usualy in falls.

So it depend, if you need a car right now and there is no good deal, then your bank is your only option.

But if you can take your time, around half a year, then you will surely get into a promotion with a good deal from the dealer, or usualy from the manufacturer; GM, Chrysler or Ford.

 

[Mr Black]

If you go through the dealer, they will bend you over and..........................well you know.

ALWAYS, go to the bank. I know people in the car business and one thing they always say is "the profits are in the financing."

P.S. Read everything you sign, those sneaky bastards like to slip many un-needed extras.

 

[Stile]

I had no problem with Mitzubishi. I financed with their 0/0/0 event last year. It was no interest, no down payment, no payments for a year. I could have had no interest for 3 years, but I went for 5 years, then refinanced through Capital One when the payments started at around 5%.

I've always done well with the dealerships. I think they offer better interest rates. One thing to consider is if they offer a rebate or a low interest rate, you might want to take the rebate with a higher interest rate through the bank, which would give you the option to save more money by paying off the loan early.

 

[bobgote]

i wouldn't go financing, but through a bank. from what i've heard it's the best way. there is usually a lot of small print with financing through the dealer.