Should I Get a Car Loan from My Bank or the Dealer?
When financing a car, you typically have two main options: getting a loan from your bank or credit union, or using the dealership's financing options. Both have advantages and disadvantages, and the best choice depends on your individual circumstances.
Overview
This guide compares car loans from banks/credit unions versus dealer financing, outlining the pros, cons, and key considerations to help you make an informed decision and potentially save money.
Related Resources
FAQ
A captive lender is a finance company that is owned by a car manufacturer (e.g., Ford Motor Credit, Toyota Financial Services). They often offer special financing deals on their manufacturer's vehicles.
Getting pre-approved for a car loan is generally a good idea, as it allows you to know your budget and negotiate with confidence.
Carefully review the terms of the dealer's offer to make sure there are no hidden fees or charges. Also, consider the overall cost of the loan, including the loan term and any other fees.
Try our Car Loan Calculator with Balloon Payment Now
Understand monthly payments, balloon payments, and total costs before you commit to a car loan.
Car Loan Calculator