Quote:
Originally Posted by lowside67
If you have real estate and can qualify for a line of credit against it, that is typically your best option in terms of both rate and flexibility of repayment.
If this is not an option and you are simply going to apply for a "vehicle loan" then it is unlikely that the terms will be better from your bank, best case being comparable. If you apply for a loan on a used vehicle, you may qualify for an incentive rate of some sort through the manufacturer, but most loans on used vehicles are done by 3rd party lenders - banks, finance companies, etc.
If you are considering a new car, crunch the numbers carefully - 0% financing will likely not outweigh the depreciation and higher purchase price on the car, although some models with limited depreciation like say a Toyota may make this decision harder than say a BMW which will very seldom be worth a new vehicle on a financial basis.
-Mark (ex finance guy at a car dealership)
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Best advice right here. 0% on a new car can be tempting, but you will likely take a bigger hit on depreciation.
Another point to consider: With a used car, often you will have more negotiating room with the dealership. Especially on a previous gen Mazda3 compared to a brand new one sitting on the lot.
For my first car loan, my parents borrowed off their line of credit and I paid them back monthly. I saved quite a bit of money on interest vs borrowing myself. If your financee can offer you a similar deal, I would happily accept. Loan rates on used cars is almost always a rip off.
To specifically answer your question about dealership vs bank for a loan, there's no difference really. A loan's a loan. Pull out your calculator, do the math, and go with the best deal.