Author : Mark Robinson
Is there any reason for someone to get a bank car loan rather than dealing directly and completely with the car dealership? While you may think you are getting the best deal through the car dealership that you could it bears checking on other types of loans outside of the dealership before you sign on the dotted line In other words there are reasons why you may find a bank car loan is a better deal than the dealership is willing to offer You may think this can’t be true as they will both be looking at the same data, but truthfully there are many reasons not to go through a car dealership
First some car dealerships have relationships with banks The car dealership either owns the bank or vice versa In some cases you just find that they deal with only ten banks In any of the cases listed you will find that it may benefit you to look for your own loan through a bank first before approaching the dealer The dealership can always give you an estimate for a car loan through them and you can compare the offers You don’t have to sign for any car loan until you have actually done all of the research that makes you comfortable
For instance you may find due to the relationship with the car dealership the interest rate is actually a little lower for their customers In some cases you may find that your bank offers a better interest rate because you have banked with them for over ten years The idea behind car financing for any company is to calculate the risk the customer poses for that loan In other words if you are someone with a short credit history, but it is in excellent shape you are going to pose a certain amount of risk based on the lack of data in the banks mind for both the direct loan and the car dealership loan On the other hand if you have worked really hard on your credit score to make sure it is always in excellent shape you will have a lower interest rate overall because the risk you pose is deemed lower
Really it is not an argument of which place you should get your loan through such as a bank or going through the car dealership, but what is going to be the fairest deal You have to do a lot of research to make sure you are getting the best deals based on your credit scores, income, and other factors You will find that some places such as online car financing are not always truthful about your actual credit scores In fact some may fudge the numbers a little It is important to know your own data first before ever speaking with an individual or company about a loan This way you can have the best car financing that is possible for you and not for the bank
Mark Robinson writes for Auto-Loans.GuideFin.com. Visit his website for information about car loans.
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