Auto Finance At The Dealer

While we have maintained that auto finance options offered by the dealer are almost always more expensive than from other institutions like banks, credit unions, etc., there may be a few deals and offers associated with it. In some cases, the dealer makes more money on the auto finance than on the commission on the car sold. Hence, many dealers offer a lot of freebies and deals when an auto finance is done from them rather than from outside.

Hence, it is always a good idea to study carefully what are the things offered to you when you finance from a dealer, how many of it are really useful to you, and you were going to get them anyway, what would be the total cost differential considering all these offers and freebies, if you finance from outside and from the dealer. Then this cost differential can be compared with the difference in the loan interests and fees and calculate the total amount you will end up paying in both cases eventually till the loan tenure is ended.

Now this might seem like a lot of work, however it can be worth it considering the difference in the amount you might have to pay in total. If the amounts from both these methods come to be almost equal in the end, then also consider the added convenience and time saved while financing from the dealer. However, if there are still considerable savings financing from elsewhere, then that would be the way to go.


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