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If you decide to finance your new car, be aware that the financing obtained by the dealer, even if the dealer contacts lenders on your behalf, may not be the best deal you can get. Contact lenders directly. Compare the financing they offer you with the financing the dealer offers you. Because offers vary, shop around for the best deal, comparing the annual percentage rate (APR) and the length of the loan. When negotiating to finance a car, be wary of focusing only on the monthly payment. The total amount you will pay depends on the price of the car you negotiate, the APR, and the length of the loan.

Sometimes, dealers offer very low financing rates for specific cars or models, but may not be willing to negotiate on the price of these cars. To qualify for the special rates, you may be required to make a large down payment. With these conditions, you may find that it's sometimes more affordable to pay higher financing charges on a car that is lower in price or to buy a car that requires a smaller down payment.

Before you sign a contract to purchase or finance the car, consider the terms of the financing and evaluate whether it is affordable. Before you drive off the lot, be sure to have a copy of the contract that both you and the dealer have signed and be sure that all blanks are filled in.

Some dealers and lenders may ask you to buy credit insurance to pay off your loan if you should die or become disabled. Before you buy credit insurance, consider the cost, and whether it's worthwhile. Check your existing policies to avoid duplicating benefits. Credit insurance is not required by federal law. If your dealer requires you to buy credit insurance for car financing, it must be included in the cost of credit. That is, it must be reflected in the APR. Your state Attorney General also may have requirements about credit insurance. Check with your state Insurance Commissioner or state consumer protection agency.

If you don't have great credit, getting financing from the dealer may be your only choice (for either new or used cars). Because the dealer wants to sell you a car, he or his finance company is more likely to make you a loan. Be aware, however, that the APR is likely to be higher, or the price of the car may be higher than a similar model sold by somebody else. That said, if you need a car, sometimes you gotta do what you gotta do.

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โˆ™ 2010-05-22 20:42:56
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Q: Should you get financing from the car dealer?
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Related Questions

What if a car dealer takes your deposit but then can't get financing?

If the financing was being arranged by the dealer he should return your deposit. However, if you were arranging the financing then it is not his fault and depending on the wording of your contract he may be entitled to keep your deposit.


How long does a dealer of a used car have to find you financing you have had a car for over 45 days and the dealer keeps saying they are searching for financing?

Why don't you go find your own financing. It is not his responsibility, it is yours. You are the one buying the car.


How do you get financing for a car?

the dealera banka credit union


Can your car be repossed by the car dealership if i was never approved for financing?

You were never approved for financing to buy the car thus you do not own the car and the dealer has the right to his property....so yes they can


Can a car dealer change his mind and get his car back?

They usually don't change their mind. What happens is a dealer sales you a car and lets you drive off thinking the purchase is complete when in fact they do not have the financing secured. This happens mainly on weekends and after normal business hour purchases. If they are unable to secure the financing they will want the car back or you to get financing of your own.


Where can one go to be approved for car financing?

One can go to be approved for car financing at a local car dealer and applying there. One of the most important things you will need is good "credit".


In what state is the Fathers and Sons dealer group headquartered?

The Fathers and Sons Dealer Group is located at 989 Memorial Avenue, West Springfield, MA. This is a car dealership and they also provide financing should one purchase a car.


Where can you get free information about car financing?

You can get free information about car financing from either a bank or a car dealership. You might also want to check with your insurance company. If you are buying a car from a dealer, I would talk with them first.


Why is car dealer financing more costly than getting a loan from a bank?

There are many reasons why car dealer financing is more costly than getting a loan from the bank. It is more costly because car dealers are usually in the business of making large amounts of money.


Where can one get low interest financing for a leased car?

One can get low interest financing for leasing a car either from the car dealer or the bank. The bank is likely to have lower interest rates and will accept the car as collateral for the loan.


Dealer Financing vs. Credit Union Financing?

Dealer Financing vs. Credit Union Financing Use this calculator to help you compare financing between your credit union and low interest dealer financing. A dealer rebate, usually not available when you choose low interest dealer financing, combined credit union financing, can produce a lower initial loan balance, and in many cases, a lower monthly payment. The best option depends on the price of the vehicle, the size of the rebate and the interest rates available for financing.


What is the most reputable car dealer website?

The most reputable car dealer website is CarsDirect because it is a good resource for research on used car listings. It offers information on financing, rebates, and incentives as well.


Can a dealer make you return a car after you buy it?

No, unless you are using financing to get the car. Then they can take the car back due to not being able to get you qualified for the loan amount.


Can I finance my new car on site at an auto dealer?

Most new car dealers will offer to do financing (usually through the manufacturers financing division). However, as with all loans, you must qualify, and your rates will vary.


Can you pay off the car at the dealership you bought it from?

The answer depends on who loaned you the money to buy the car. The answer is yes if the dealer does his own financing. I think most dealers arrange financing with a bank or loan company. If that is the case, you make you payments to them.


What are the consumers rights when a car dealer sells the wrong car?

Not sure of what you getting at because buying and selling a car is a two way street. Did the dealer switch cars? Did they sale a trade prior to financing for the purchased car was approved? Try clarifying the question.


Can you return a car in ct after buying it?

There is no LAW that allows this.There may be reasons a car can be returned including the Dealer being unable to provide Financing as ppromised or a Negotiated return.BUTThe dealer does not HAVE to take it back under law.


What is a buy here pay here car lot?

This usually refers to a car dealer that does their own financing. Because there is often no bank, you would pay the car lot directly.


Does the dealer need to ask about former employer references etc when buying a car with cash?

Absolutely not. That would be a financing question.


Can a car be repossessed by the dealership?

If the dealer ship financed the vehicle, or represents the financing party, such Ford Finance, or GMAC, then yes they can.


How does the availability of consumer credit benefit the car dealer from whom you are buying the car?

Well, for starters it allows people to buy the car. Secondly, a bank contracted with the dealer - that is to say the dealer handles the financing - will pay the dealer anywhere from a $100 "flat" to up to 2% APR on the loan. They will have to pay back the difference to the bank if you pay off the the loan early. If you source your own loan, then it doesn't benifit the dealer. Since they are major sources of lending, dealers will often have cheaper sources of financing than is available to the average consumer. When this is the case, it is cheaper for you to go through the dealer regardless of what the dealer is getting paid.


How do you trade upside down car?

I recommend you not do this! This cost a lot in extra interest on your financing!In North America this is possible as long as only the financing is upside down. If the car is or has been upside down it is very difficult.The problem is you take on the finance rate.Go to a dealer, tell the truth about what you owe. They will organize up financing that pays off your old car and buys a new car.


Where can one find current new car loan rates?

Car loan rates are typically found at car dealers, if the dealer or the car company they sell for is offering financing, or at local banks and credit unions.


Can a new car be returned to the dealer if the dealer cannot deliver contracted upgrades to the car?

The car should have never left the lot until the upgrades were completed. But yes, in this case, the car should be returned, and you should get all your money back.


If you are current on your payments can the car dealership who sold you the car repo it or is the bank that is financing the vehicle the only one who can do that?

The bank/finance company. The dealer has already been paid for the vehicle