Paying for Your New Car

If you decide to finance your new vehicle, you have a variety of ways to do so. Here is an explanation of the pros and cons of the different financing options available to you.

Dealership Financing

Not surprisingly, dealership financing is the most popular source for auto loans. Many customers choose the dealership for convenience, not realizing that dealerships rarely offer low interest rate car loans. As a rule, dealerships are almost never the cheapest source of financing for your new vehicle. Even seemingly attractive 0% financing offers are unbelievably bad deals in reality. When you apply for a loan through a dealership, they find a lender who will issue your loan, and this lender supplies the dealer with an interest rate. The dealer then inflates this interest rate to make a profit on the financing deal. In fact, dealerships now regularly make more money on the financing of new vehicles than on the actual sales. You are better off cutting out the dealer middle-man and pursuing low interest rate car loans independently. If you have any more questions, please visit our faq page.

Independent Low Interest Rate Car Loans

Independent, or third-party, low interest rate car loans are what we offer on our site. These are loans issued by lenders not affiliated with the dealership. If you were to apply for low interest rate car loans through your bank or credit union, this would also qualify as third-party financing. However, by pursuing low interest rate car loans online instead of through a traditional lender, you can save time and money. Unlike traditional banks and credit unions, we do not charge an application fee for our low interest rate car loans. In addition, we will offer you up to five quotes on low interest rate car loans for free, whereas banks would only supply you with one quote that is usually not free.

Home Equity Loan

Attracted to the very low interest rates these loans have to offer, some new carbuyers decide to take out a home equity loan to finance their vehicle. Although these low interest rate car loans come with very reasonable rates, they might be too risky for some buyers. If you fall behind on your payments on a home equity car financing loan, you stand to lose your home. For most, that is too great a risk to take for a new car. If you would like low interest rate car loans without this risk, you can always find affordable rates on our site that don’t require you to use your home as collateral.