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 provided by
Answered on Apr 27, 2021
“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. “
Did this answer help you?
Ask us a question by email and we will respond within a few days.
Have a different question?
You can meet us at our office and discuss the details of your question.
Browse by topics
What others are asking
Do insurance companies provide coverage for options beyond the standard trim of a car?
My friend just did some cool customizations to his car and I kind of want the same thing for my car. Will insurance cover that?
Feb 22, 2021
Why did my health insurance company deny claim after slamming my finger in my friend's car door?
"My health insurance initially paid for my medical bills when I broke my finger after slamming it in my friend's car door. However, they recently sent me a bill and said they were denying my claim. They said I need to get in touch with my friend's auto insurance company. What will happen next?"
May 20, 2021