Auto Loans – Ranking Banks, Dealers and Credit Unions As Choices

Are you better with a loan for a car from a bank, credit union or the car dealer

Make The Best Choice For Your Car Loan

It is so exciting to get a new car. Whether the car is totally new, or slightly used it is an awesome feeling to have something that is yours and that looks great. A car is a purchase that will be used for many years so it is very important to make the right choice. Aside from the fact that a car is a necessity in many places a car is the second most expensive thing that most people will ever purchase after their home in their lives.

Few people have the funds to by a car outright, and for that reason many people decide to get a loan for their car. There are different places that a person can go to in order to attain a car loan. They can either go to their bank, credit union, online lender or often they may be offered a loan from the car dealer themselves. Both options can have advantages and disadvantages, so it depends on which one a person wants to go with.

Getting A Loan From A Bank

There are many reasons why a person would choose to get a loan from their local bank. Banks are entities that people trust. They are the places that hold their money and generally people feel like their banks have their best interest at heart. The good thing about getting a loan from a bank is that they already have a relationship with the person and because of that the bank will be willing to pardon things like missed or late payments. Apart from that, the bank may offer better interest rates for their loyal customers.

Getting A Loan From The Car Dealers

Car dealers are in the business of selling cars, they are professionals that know what it takes to get a person to buy a car as quick as possible. They offer deals for car loans as an incentive to people that may purchase a car from their dealership. The good thing about getting a loan from a car dealer is that at times they will offer a loan with very low or even no interest for a specified period of time. A person may be able to drive off with a car without having to pay interest for up to a year.

In the end it is really a person’s choice who they want to get their car loan from. Both banks and car dealers can offer good deals on car loans. There are really benefits to both options, and it is best to choose the one that will give you the lowest interest rates over time.