Car Loans Comparisons – Banks and Car Dealers
Bought from The Lot, the Car Dealer Loan
Getting a car dealer loan may seem like the best and easiest way to get a loan for your vehicle purchase, since it is where you will be buying the car from anyways. However, this convenience may cost you some extra money.
It is important to do your research first to be sure you know what you’re getting. You can do this using the Internet, speaking with banks and lending institutions, and talking to family and friends to get their opinions. The key thing to look at is interest rates — the car dealership may be fast and easy to get a loan from, but what are the interest rates being charged? Remember, the higher the interest rates, the more money you will end up repaying.
We all want to save as much money as possible and knowing exactly, to the dollar, how much money the full amount repaid will be is very important. A small difference in interest rates over the course of several years can be the difference of hundreds or even thousands of dollars. Maybe in the long run this doesn’t seem like very much, but if you don’t have to pay, why do it? Think of it as hundreds of dollars lost — anybody who thinks of it that way will appreciate the importance and worth.
The Banks
Getting a bank car loan may also seem like a good option. After all, this is one of the main things banks do, is give loans. Again, it is important to compare the interest rates of both places online or with people you know and trust. A secured loan from a bank, when you offer something as collateral, something the bank will take in the event you can’t pay your loan, can offer very low rates. This is because the bank has minimized its risk in the loan by potentially getting something of equal value.
Ultimately, opting for banks and lending institutions gives you a less expensive option when it comes to dealing with personal loans and car loans. You also know they won’t be loading the interest rate to provide them with a little extra profit, as a financier through a car dealership is likely to do.
Compare and Research
As with any decision, car loans and where you get them from is a big choice and it requires a large amount of research and comparison. Don’t rush into any decision when it comes to money.
Also, don’t be afraid to negotiate. Car dealers can sometimes receive their car loans at wholesale rates and then mark up the interest rate you’re charged to give them more profit. This means they do have the room to negotiate for a lower rate than is advertised. Once you know their lowest possible rate, take this to your bank and negotiate again.
We all know how hard it is to gain money and how easy it is for it to be spent. Speak with the banks and car dealers about the various loans, the rates and terms, and make your best decision.
Featured Personal Loans
| Personal Loan | Details | Min Interest Rate | Min Comparison Rate | Min Loan Amount | Min Loan Terms | Apply Fee | |
|---|---|---|---|---|---|---|---|
 ME Bank Personal Loan | A low rate personal loan from ME Bank with no application fee for a limited time. | 13.59% | 13.81% | $5000 | 1 year | $0 |   |
 Aussie Personal Loan | A smart way to consolidate your bills to save time and money so you can pay for your holiday, a wedding or renovate the house. | 13.90% | 14.84% | $3000 | 1 year | $199 | |
 Sugar Money Personal Loan | Fixed rate personal loan with flexible options to get you funds when you need it. | 13.99% | 15.00% | $3000 | 2 years | $250 | |
 bankmecu Personal Loan | A convenient and fast way to purchase a car or debt consolidation with affordable rates and fees. | 13.49% | 14.55% | $1000 | 1 year | $150 | |
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