Car Finance Advice (page 2)
Another excellent reason for financing your car is when you withdraw your saving to pay for the car; the interested you pay will be less than what you make in your saving account or stocks. Hence removing your cash means to stop making money off it.
Financing through a bank or credit union is probably the best option as the credit union is a non profit cooperative financial institution that offers loans at reasonable rates.
Depending on their credit score, financing through dealers could work for some people as the dealer may sometimes offer loans at low-interest in order to beat the rate.
Home equity loans have become a popular source of car financing. Firstly lenders look more favorably on home owners as this shows a commitment to repay a large sum over a period of time. There is also the advantage of tax deduction on the interest paid. However, a borrower should not exceed the market value of his home.
Make sure to take time to arrange a loan before heading to the dealer. Some online lenders guarantee a faster response, so fill out forms and do get approval before you venture to that showroom. You don't want to depend on the dealer for lending you the money.
If you are purchasing the car through a private party, ensure you are qualified for a loan before you enter into the negotiations. If you are buying through a dealer, you should compare the specifics of the dealer’s offer with other market players.