Financing your New Car

You have chosen the car you want and now you need financing. There are several choices and each one has it’s pros and cons. The pros of financing from a dealership is fast, convenient and can be competitive. The cons are high pressure for sure, usually not competitive but do be prepared for a big sales pitch on extras. These loans are typically front-loaded which means the payments are made up of more interest in the beginning of the loan and that’s bad if you think you might be paying the loan off early.
If you choose a bank or credit union you will get competitive rates, personal service, no sales pitch for add-ons; they often can tell you if you’re paying too much for a car and they can provide free life insurance or disability insurance with loans. This type of loan is usually simple interest loans, interest spread evenly throughout the term of the loan. The cons will be not as convenient as dealership financing and you can’t set it up at night or on the weekend.
Online financial institution pros are, usually competitive rates, quick, easy. The cons will be, no personal service and you are dealing with an unknown. Scams are possible. If you choose to go with a family member for financing, you will get personal service for sure but the cons will be the chance of loosing your relationship.