Does a car dealer always offer the best interest rate on a car loan?

I want to purchase a car for around $40,000 after the down payment. The dealer offered me 3.49% financing for 60 months, which puts my payments around $730 a month. That seems a bit high to me, but the interest rate doesn't seem terrible. That said, I haven't shopped around yet. Does a car dealer always offer the best rate on car loans?

“The dealer might offer the best rate on a car loan, but without shopping around, you won’t know.
Go to banks, credit unions, or any other financial institution that offers car loans to see what they can do. You can probably find a better rate than the dealership, and you can avoid the extra charges that some dealers add with their financing.
Keep in mind that you’re also going to need full coverage car insurance if you finance a vehicle, which can add as much as $400 or $500 a month to your expenses.
Finding cheap auto insurance is easier than ever before. The free Jerry app compares rates from the top 50 companies and delivers the best deals to your phone in just a few minutes.
Make sure you can afford all of this before you sign on the dotted line.”
Eric Schad
Answered on Jul 30, 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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