When applying for a loan to purchase a car, it can often times be advantageous to apply for a loan from outside the dealership. When you get a loan directly from a dealer (also known as a dealer-arranged loan), the dealer will first give you the loan before selling it to the bank. Thus, it is often in their best interests to not give you the best rates.
In bank financing, where you get a loan from the bank, you are working directly with the bank, which means that there is no car-dealer trying to increase the interest you are paying on the loan.
One must remember that in both of these cases however, the terms of the loan are negotiable, so no matter the option you decide to use remember to negotiate. This can save you many dollars in the long run. Furthermore, getting quotes from multiple sources and vendors may help you save money as well. Each different place will have different terms, and it is imperative that you pick the one that is best for you.
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