Many consumers face a choice of financing before you buy a new car. Since equity of financing out of the question for most, foreign capital must be recorded. Usually, car dealer financing is selected in, what, however, can be a big disadvantage, because to apply for a car loan using the own bank is cheaper and more flexible in many cases. By taking out a loan through a Bank, a buyer through the subsequent cash payment at the dealership can negotiate a significant discount and therefore save money. At the dealership, a rebate would be impossible, if the car is to be financed.
The purchaser occurs for the seller than paying cash. Furthermore, a buyer at the dealership for a financing pays not only the normal purchase price, but also high interest rates and fees. Thus effectively creates a much higher purchase price. This interest also fall with the Bank, are usually lower. In addition, a relatively high deposit is before the financing at the dealership in most cases to provide, which can not muster the most buyers.
Also here, it saves as a consumer, if one chooses the Bank loan. The fact that during the”financing” in addition to the monthly rates for the dealership also often a final rate must be saved, underlines the fact that a bank loan is cheaper. In most cases, a loan at the dealership can also not prematurely be repaid and must be repaid over the entire term. The loans on the other hand, a permanent special repayment is possible. Also this, so large amounts can be saved if the loan is to be repaid in advance. All these aspects indicate that an external car financing can be cheaper and is also usually cheaper than financing through the dealership. It’s worth the comparison or the examination of the various offerings but in each case before finalizing a financing. The financing of the Bank is not always the cheapest option. Usually, but large amounts can be Save compared to the financing through the dealership. Thomas Ewert