Overhaulin'

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

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?

Public Comments

1. 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.
2. try asking to see if there is an independant financial adviser in the community or local government office
3. YES Car finance is extortionate!
4. you are kidding ,buy what you can afford or save up and buy outright,why get into debt and pay more than you need to
5. 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!
6. 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.
7. 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.
8. Check them both out - depends on what offers are available at the time.
9. best is from a bank
10. bank alway bnk not dealer of finance companys too high interest better the devil you know
11. 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.
12. 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.
13. 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
14. got for a personal loan from a bank. typically you pay one months interest on the outstanding balance if you choose to pay it off earlier....its not much on 6K
15. The dealership has better rates.
16. 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.
17. I don't know
18. use a bank and get a flexible loan. don't go to indepndant agencies. the more you borrow the lower the APR...