How to get the best auto loan with bad credit?
Borrowing money for a car is, of course, a car loan. However, there are many different options for taking out a loan for the new car. You can do this at the dealer, or in the form of a regular revolving credit or a personal loan from the bank or a credit intermediary. But what is the cheapest form of borrowing money for a car for you? What is the correct form to start the negotiations? Where do you get the most for your money earned? You can use our help and professional advice to get the best auto loan with bad credit.
A car loan from the bank or intermediary
If you take out a loan with the bank or intermediary, you are in any case financing independently. What we mean by this is that the loan is really “separate” from the car. There will be no pledging of the loan.
In addition, the advantage is that existing obligations are looked at. If you already have current loans, the bank or intermediary can immediately check for you whether transferring the loan offers you an advantage. This allows you to immediately save something.
The disadvantage of this form of a car loan is that the dealer occasionally wants to have nice promotions, such as the 0% interest promotions and the like. So you cannot use special promotions.
Borrow money from the car dealer
To immediately clear up misunderstandings. In general, you do not borrow the money directly from the car dealer, but you borrow it from an intermediary or financing company with which the car dealer can do business. In general, it is, therefore, the same as borrowing money from the bank, or through an intermediary. The big difference, however, is that the interest is often slightly higher. You have a relationship with the car dealer. They are concerned with selling the car, not with advising the loan with the lowest interest rate.
In any case, we recommend that you pay close attention when borrowing money from the car dealer.
The car loan through the financing company
The big advantage of this type of car loan is that you can participate in special promotions. The 50/50 deals, or the 0% interest on your loan. That all sounds nice. You must, of course, ask yourself who will ultimately pay the costs of the loan in such actions. Is it already included in the profit on the car? If, for example, the discount that you stipulated suddenly expires, you will ultimately pay for the loan yourself. Are you getting a good discount on the car and financing at 0% interest? Then you probably have the cheapest solution.