Car Financing with different sources.
Dealership Car Financing
Car Financing at a car dealership is very convenient, fast, and sometimes competitive. But sometimes the finance manager will add things into the contract that you might not be aware of till you start going over the contract. Not that life and disability insurance is bad on a loan, it's just sometimes cheaper to get somewhere else.
Car Financing with a Bank or credit union
Banks and credit unions are not as convenient as dealerships but they do offer competitive rates, in person service, no pressure sales, will tell you what the car is worth, sometimes will provide free life insurance or disability insurance on the car loan; most of which are *simple interest loans.
Online Car Financing
On-Line bad credit car financing usually have competitive rates, very fast service, easy applications, no pressure sales, and will usually point you directly to the dealership in your area to buy your next new or used car. Therefore you don't have to drive all over the place looking for a financial institution to finance your car. You can get pre-approved in just minutes from the convenience of home, work, or any place that you can get on line.
Car Financing from a Family member or friend
Borrowing money from a family member or friend is very risky and I would not recommend this. Sure, it’s easy, very flexible, and often has great rates.
But all kidding aside is it really worth risking your friendship over a car loan?
Taking on a Home equity loan for Car Financing
Getting a home equity loan to buy a car only has one advantage, as far as I am concerned. That would be a tax break on the interest of the loan. The interest rates are usually going to be the same or lower from a car dealership, bank, credit union, and even online. So in my very best opinion taking on another loan or lien against your home to buy a car would not be a good idea.
* Simple interest car loans have payments that are due on a monthly basis. There are no penalties or higher interest rates if you prepay your car loan.
Simple Interest is a method of allocating your monthly car loan payments between the interest and the principal. The amount of your car payment allocated to interest is calculated based on your unpaid principal balance, the interest rate on your car loan, and the number of days since your last payment. The remainder of your payment is credited to principal and reduces the unpaid principal balance on your car loan.
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