Should I take a dealer financing option to save even more on a new car?

Should I go for the dealer financing or use my credit union? I am in the process of buying an Audi A6 and have already gotten pre-approval from my credit union. This helped me negotiate a lower price with the dealership but the dealer is saying they can actually beat my credit union’s interest rate.

Answer
“If the dealer is willing to actually beat your credit union’s rate without adding any fees or sneaking in any charges, then you should let them.
It sounds like they are working really hard to earn your business, but you should keep an eye out for any fees that the dealer may be trying to use to make up for the price drop.
Dealers may have hidden fees like:
  • early pre-payment
  • late payment
Also keep in mind that dealers may stretch out the length of a loan to make your monthly payments smaller, but you end up paying more in the long run.
Another way to ensure you save money over the life of the loan is to come prepared with a sizeable down payment (usually 20% of the car’s value).”
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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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