when financing a car

[troi.oi]

when financing a car is it better to go through a company and find out the options from other financing company rather then going through a dealership financing company because they would want whats best for them correct?

[lizeeh]

I think that entirely depends on the rates offered by the dealership and the current economy. For example, VW and Toyota were offering 0% financing for awhile and you can't go any lower than zero even with other financial institutions. It also depends on your credit score. If it is weak, it might be hard to get a good rate at either place. Hope this helps.

[Redlyne_mr2]

The dealership wants to sell car so they offer their clients the best rates available to sell that car. If you go to your bank a car loan will be anywhere from 7-11% interest.

[hainida78]

Original Post Removed. (Please read the Forum Rules and Terms of Use (http://forums.beyond.ca/articles.php?action=data&item=1) before posting again, or risk getting banned).

[ExtraSlow]

The dealers currently have some very low rates, which you aren't likely to see from any other finance company.
None of them have your best interests at heart, so you need to watch your ass no matter who you go with. Read the fine print, get everything in writing.

[Zero102]

Originally posted by ExtraSlow
None of them have your best interests at heart, so you need to watch your ass no matter who you go with. Read the fine print, get everything in writing.


Best piece of advice here :thumbsup:


That said, if you are paying standard rates at the dealership (5%+) you are probably better going somewhere else, but if the rates are below that you should probably finance with them (assuming you require financing and can't simply put it on a ~2% LOC or something similar).

[Sorath]

usually dealerships will have better rates from the manufactures, regardless even if they do suck, they do go through other major lenders like the banks.

[ArjayAquino]

I have a similar question. I will be buying a car privately and I'll need to take out a loan. When I went to a GM Dealer to talk about my current car, I told them about my plan and they said that they could set up the loan for me with the bank of my choice. They said they can get me a better rate than if I went straight to my bank. My question is, what would be in it for them, since I'm getting a private car?

I'm probably going to talk to my bank anyways, just wondering if I should consider going through the dealer.

[Sorath]

they might be able to get you a better rate than your bank and they might not, try shopping. usually td and first calgary give the lowest rates right now for car loans. that being said if you go through them they`ll probably charge you a doc fee and they`ll have a chance to sell you insurance and warranties

[nixrx8]

They'll make a small reserve assuming the rate isn't crazy low.

[Xtrema]

Dealer rate is great. But you may have better discount on MSRP and doc fees if you pay cash or with your own financing.

Only mainstream cars get 0%. Most luxury cars are 2.9 to 5% for financing. In which case, a secured LOC may be a better way to go for short term.