Compare Car Dealer and Bank Interest Rates
by David Miller
Many car buyers falsely assume that they will get the best rates and terms if they get pre-approval car loan from their local bank and credit union. This is rarely the case. More often than not lenders associated with car dealers can beat most of the rates and terms offered by local banks and credit unions.
To get the best financial deal when buying a new or used car, consumers should use every resource available to them, which includes local banks and credit unions. The fact is, however, that new and used car dealers have access to multiple finance sources that car buyers do not.
Getting a car loan pre-approval prior to visiting the car dealership is a good idea. Armed with a car loan pre-approval you, and the used or new car dealer, will know exactly the rates and terms that you they will have to beat.
Believe it or not, the car dealer may be able to get better car loan interest rates and loan repayment terms through the same lender which you are pre-approved. This is possible because many lenders discount rates for car dealers to earn more business from them.
So they next time you're in the market to buy a new car, get pre-approved before visiting the dealership, but let the finance manager work with his or her lenders to compete for you're business. The worse thing that can happen is that you will save money by lowering your monthly car loan payments.
To get the best financial deal when buying a new or used car, consumers should use every resource available to them, which includes local banks and credit unions. The fact is, however, that new and used car dealers have access to multiple finance sources that car buyers do not.
Getting a car loan pre-approval prior to visiting the car dealership is a good idea. Armed with a car loan pre-approval you, and the used or new car dealer, will know exactly the rates and terms that you they will have to beat.
Believe it or not, the car dealer may be able to get better car loan interest rates and loan repayment terms through the same lender which you are pre-approved. This is possible because many lenders discount rates for car dealers to earn more business from them.
So they next time you're in the market to buy a new car, get pre-approved before visiting the dealership, but let the finance manager work with his or her lenders to compete for you're business. The worse thing that can happen is that you will save money by lowering your monthly car loan payments.
