Is there any reason I shouldn’t take dealer financing if they can beat the offer from a credit union?

Should I take dealer financing if their offer is better than my credit union? I have an offer from my credit union for 1.99%, but the dealership said they can beat that offer with .99% interest rate.

Answer
“A lot of times, the dealership will sneak in additional fees and add-ons when buying a new car. These can be hard to spot and will also make that lower interest rate loan actually cost you more in the end.
If the dealership is truly trying to earn your business and not just trying to increase its profit, then there is no reason you should not take them up on the offer. With a sizeable down payment, both the bank and dealer financing options can be good for you.
Just be sure to keep an eye out for any add-ons or fees.”
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Johnny Puckett
Answered on Jul 07, 2021
Johnny Puckett is a freelance writer and automotive expert. He has contributed content to a number of some of the largest online publications, aftermarket automotive manufacturers’ sites, and automotive informational sites. His experience in the automotive and information fields informs his writing at Jerry. His automotive interests bleed into his free time, where he enjoys modifying his favorite cars and woodworking.
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