Overhaulin'

Planning to buy a new car, Bank loan or Dealer loan?

I am planning to purchase a new car from toyota....i heard that auto loans that are not from the dealer have a way lower apr rate (capital one or HSBC). What would be the best way to go? loan with the dealer or a bank.

Public Comments

1. bank
2. Today every person has need of car, because it has become the necessary need for the people and status symbol also. If you have bad credit history or poor credit history and look for purchase a car, then it is very tough for you. Due to bad credit history, lenders are not keen toward<!--providing you loan, but do not be discouraged.Generally, bad credit car loans are available at higher interest rate, but you can take at competitive interest rate after placing your assets as collateral in secured bad credit car loan. You may find some car loans here, http://best-loans.awardspace.com/guaranteed-car-loan.htm You also can grab bad credit car loan without keeping your asset as collateral, but you have to pay competitively higher interest rate. Hence-->you can take this loan at better rate, because competition among lender.You can reduce your interest rate after talking with the lender
3. Dealer rates are typically as good or better than bank or credit union rates, espcially if the car manufacturer is offering special promotional rates. It's not unusual for dealers to offer such rates as low as 0%-3% on certain vehicles, which banks can't match. However, you must want that particular make and model and have an excellent credit score. If you want another model, you'll have to pay normal rates, which are also based on your credit score, and you might do better at a bank or credit union if you shop around. You can check for any current promotional rates on vehicles you're interested in at Edmunds.com, in the New Car "Rebates and Incentives" section. Here's an article that might help more: http://www.firstcarguide.com/finance/where-to-get-car-loans.html .
4. Shop around to find the best rate. It's a good ide to go into the dealership with financing all set up. If they can beat that rate then go with the dealer's rate...if they can't use your own. Your own bank or a credit union will usually give you the best rates. Simple enough.
5. hsbc and cap 1 are usually secondary loans thru dealer,just be sure to ask for the callback rate once you have submitted your application.depending on the car and the manufactorer,you may get rates as low as 0%