Almost all lenders provide car loans. But with such a wide availability, know the pros and cons of each place.
Dealerships and automakers
Many people find their new favorite car at a dealership. In case you lack financing for purchasing a car, the dealership can arrange it for you. Although this might be easy, you should be cautious. This is because dealerships work with different lenders for arranging to finance. As compared to those lenders, the dealership can charge you higher.
Another option is to gain a loan through the lender of an automaker. For example, Ford Credit or Honda Financial Services are popular lending arms for car financing. People also get loans through the dealership but it’s wise to apply online. Automakers usually offer special promotions through which you can save a lot of money. However, you should be eligible for those promotions.
Banks and credit unions
You can get pre-approved for an auto loan by visiting your bank or a credit union. It’s easier to get pre-approved at a bank since you already know them. In this way, you can have your car financing and bank account at the same place. Ikano Bank is a great bank for car financing. However, do not completely ignore credit unions as they can offer a bit lower interest rate due to decreased overhead. Moreover, credit unions can also be more lenient with the loan requirements. This will be valuable for those people who lack sufficient credit.
Through online lenders, you can achieve a car loan in the comfort of your home. Due to the absence of overhead costs, these can offer decreased interest rates. However, don’t provide your personal information to all online lenders. Do your online homework and only trust one after logical judgment. You should be confident that your chosen lender is credible.