Do you get a better car loan rate from the bank or the dealer?

I've never purchased a car before, but I need to secure financing to buy the vehicle I want. Do you get a better car loan rate from the bank or the dealer?

Answer
“Generally speaking, going directly to the lender can cut your interest rate. You can gain preapproval and get a basic idea of what interest rate and budget you’re working with.
That said, dealers may also be a good option from time to time. They run promotional rates, such as 0% APR financing, and work with several lenders to find you the best rate.
To determine what’s best for you, you should shop around. Just make sure to factor car insurance into your budget on top of your monthly car payment, as most lenders require full coverage.
Full coverage can be pricey, but there are ways to save. Jerry does all the hard work for you, pulling quotes from the top 50 companies and delivering the best deals to your phone in minutes.”
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Eric Schad
Answered on Aug 10, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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