Should I get financing through the dealer or a bank?

I'm trading in my old car as a way to get money off the price of a new one. I still need to finance the rest. Should I go through the dealer, or should I finance through a bank?

Answer
“Although some dealers have programs with local banks and credit unions, oftentimes they have their own financing department. If you go through them, you’ll likely pay a higher interest rate.
Like you would with car insurance, your best plan of action is to shop around for rates. Banks and credit unions can typically offer lower rates than the dealership. However, dealerships also run specials with zero-percent APR financing, which is a no-brainer.
By shopping around, you can make certain you aren’t throwing money away each month. “
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Eric Schad
Answered on Apr 27, 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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