- Home
- / Questions
- / Shopping & Pricing
- / Is it better to get a loan or finance through a dealership with a trade in?
Is it better to get a loan or finance through a dealership with a trade in?
I'm in the market for a new/ used car and have a car to trade. I also have poor credit but
have been at the same bank for years now. What would be my best option to get the best
financing rate and or trade in on my current car?
3 Answers
Racer_X answered 4 years ago
If I were you, I'd be inclined to try your bank first as they might be more likely to approve you for a loan at a somewhat lower rate. The Dealer will likely try to get you approved with banks that specialize in "poor credit" and you'll automatically get stuck with a high interest rates in the double digits. You'll get more money selling your car as a Private Party Sale (Why not try selling it right here on CarGurus?). Dealers are notorious for giving you much less than the car's value, so they can resell it and turn a decent profit (because they're greedy like that!).
RNikolai answered 4 years ago
@ racer_x, thank you! Really thank you! I feel like I'm speaking another language to everyone I've asked the same questions! I'm young and have never bought a new car. I am at an age where I want to be able to depend on a new car enough to spend 20-30 grand and be able to enjoy it for the next 10 years while I pay it off.
Racer_X answered 4 years ago
Glad I could help! Most car loans are for 5 years (If you can double up on a payment every now and again, you can pay the car note off that much sooner and enjoy not having a car payment until you trade it in or sell it!). Good Luck in getting the car that you want!
Your Answer
Related Questions
-
Is it better to get a loan or finance through a dealership with a trade in? 3 answers
I'm in the market for a new/ used car and have a car to trade. I also have poor credit but have been at the same bank for years now. What would be my best option to get the best financing rate and o...
Shopping & Pricing
-
2001 Avalon with some cosmetic issues is it worth fixing them to get a better price on a trade or to sell it or should I save the money and trade it as is. 1 answer
Right now I think a dealer may offer me 1000.00 for my car but if I fix the cosmetic problems I can probably get a lot more. Car runs great. Also will it depreciate a lot more if I wait until Sept. to...
2001 Toyota Avalon XL
-
Shopping & Pricing
-
Who gives me a car loan, cargurus or a dealership or do i have to go through a bank? 6 answers
I'm interested in your 2001 porsche 911 you have listed and I'm wondering if I can still get a 5 year loan on this older year car.
2001 Porsche 911 Carrera 4 AWD
-
Shopping & Pricing
-
If I need to trade my car, is it better to buy a new one outright, or lease one? 5 answers
My 2004 Beetle has gotten to the point where I need to consider a bigger car and one that is more reliable for my daily commute and other driving. I want to make the most economical choice for my ne...
2004 Volkswagen Beetle GL 2.0L
-
Shopping & Pricing
-
I have a camper with a clear title,worth more than a vehicle I want. Is there any way to trade it title for title to a dealership? 29 answers
Curious about if there is a possibility in what I am wondering. One way or another an answer would be nice. :) Thanks
2001 GMC Yukon XL
-
Shopping & Pricing
Shortcuts
- Shopping & Pricing Questions
- All Questions
- Ask a Question
Search Shopping & Pricing Questions
Shopping & Pricing Experts
-
#1Tom DemyanReputation18,390
-
#2F_O_RReputation9,680
-
#3COMETGUY61Reputation6,320
Content submitted by Users is not endorsed by CarGurus, does not express the opinions of CarGurus, and should not be considered reviewed, screened, or approved by CarGurus. Please refer to CarGurus Terms of Use.