Auto Financing

Bank Loans Compared to Dealership Financing – Which Is The Better Option?

Planning to buy a new vehicle – a truck, car or SUV? Are you always dreaming about riding around the town with that Pontiac or Astra? You’ll be pleased to know that buying a car is now easier more than ever.

There are bank car loans (at 0% financing) and dealership financing that puts your dream car within your arm’s reach. But the question is – which is better of the 2 financing options? After all, nobody wants to settle for a seemingly good deal when they can find a better one.

True, the 0% financing from bank loans looks more appealing than the dealership financing. However, a closer look at the latter will show you that taking a new car with dealership financing and manufacturer’s rebate has its advantages.

First, it builds a stronger equity position for your car as opposed to the appealing bank loan with 0% financing. This means you have the opportunity to be flexible when buying a new car. In the long run, you’ll owe significantly less than taking auto or bank loan.

Whichever financing options you look at, it’s very important that you focus on the numbers and details entailed. The determining factor should be the listed interest rates offered as well as the price of the car that you’re planning to buy. If you’re thinking what details or figures you should look at, here’s a brief list that should help you:

• The loan terms (the number of months it will take to complete the payment)
• Best negotiated price for the car, truck, or SUV that you’re eyeing
• Amount financed
• Finance charge (its zero for 0% financing)
• Annual Percentage rate
• Amount of monthly payment
• Total amount of payments

So your mind is all made up and you want to buy a new car. But before you could get behind the wheels of your dream car, truck, or SUV, you should have a clear plan on how you could get it financed. If you don’t have even the slightest idea how to get the funding you need for that new car, here are some tips that should help you:

Tip No. 1 – The best way to pay for a new car is with a cold and hard stack of Benjamins…period! However, that’s only available if you have a lot of disposable income at hand. If you’re one of the fortunate ones who do, take advantage of it!

This means you don’t have to apply for an auto loan where you’ll have to sort out payments every single month for the next 3-4 years. Not to mention you won’t be paying interest.

Tip No. 2 – What if you don’t have enough cash for buying your dream car? Don’t worry. That shouldn’t be a problem when there are lending institutions like banks and credit unions that would be more than happy to offer a helping hand.

It helps to have a short list of banks and credit unions that offer car loans. With a list, it’ll be easier for you to find what the best deals are. Additionally, you want to determine whether you’re pre-qualified to take out a loan or not.

Tip No. 3 – Last but not the least, there are car loans available through dealerships. In many cases, with its zero percent financing and rebates, this has been found to be more advantageous and money saving than taking out an auto loan from a bank or other lending institution.

By Brennan Howe

You’ve found the car that makes your heart race by 120 beats per minute. Now only one thing stands between you and the car of your dreams: financing the buy. In a perfect world, you’d pay the total price in cash without blinking. But if you’re comparable to the seven out of ten car and truck buyers who don’t exist in a perfect world, chances are you’d be paying for your car by way of one of several financing schemes.
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By Carrie Reeder

Getting an approval for a car loan when you have no credit history can often times be almost as difficult as getting a car loan approved when you have bad credit. There are things that can be done, however, which will improve your chances of finding a no credit car loan.
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By Carrie Reeder

You can easily find auto financing, even if you have bad credit. Shopping online allows you to find reasonable rates with speedy service. You can also make your application look more appealing by increasing your down payment and asking for pre-approval.

1. Shop Online For Auto Loan Financing

Shopping online for you auto loan has a number of benefits, including speed. Car loan applications are processed quickly since information is entered directly into a lender’s database. No hassle with filling out paper forms.
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