Dealership Financing

Some car dealerships like to advertise great finance rates, such as $0 down or 0% APR. Unfortunately, these offers are only eligible for people with great credit scores that meet other stringent requirements as well. These offers are used as bait to get you to visit the dealership. The typical loan interest rates(APRs) at a car dealership are lackluster at best. Dealerships simply sell you financing from local banks, and they often times add 1-2 percentage points on top of the banks loan offer to make even more money off of you. Worse yet, car dealerships are not required by law to disclose this information.

Rather than opt with dealership financing, we recommend using your current bank or credit union. I highly recommend shopping for car financing online before visiting the dealership. One of your first stops should be Bankrate.com as it will show you local car loan rates in your area. Driverloans.com also offers a Quick NO Obligation Auto Loan Application

 

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