Accessories & Financing

Car Loans: Where to Apply for Them?


Buying a car is an important event. To make sure it goes smoothly, you need to ensure that you get the right sort of financing from the right place. But the best lender for you depends on your financial situation and the type of car you’re going to buy.

When you’re exploring offers, ensure that to speak to dealerships, banks, online lenders, and credit unions. Let’s look at a few in detail.


 Dealers often work with banks and lending companies. They act as the middleman in the finance process. Dealer interest rates are usually higher because you’re not dealing directly with the lender. The dealer also gets handling fees for acting as an intermediary.

Captive Finance

Several large car companies have on-site financing departments called captive finance companies. Good examples are Ford Credit, GM Financial, and Toyota Financial Services.


 The best part about applying for a loan from a bank is that you can get preapproved for a loan from several sources and compare the quotes to pick one that’s best for you.

Credit Unions

 These are nonprofit organizations that offer members low fees, low loan rates, and high savings rates. If you’re a member of a credit union, you’re likely to find a great loan offer here. Credit unions are also more flexible than banks in case you have poor credit. But it all depends on the kind of relationship you have with them.

Online Lenders

Shopping around with online lenders is often the most convenient way to look for car financing. It allows you to compare and evaluate loan terms and rates without leaving home. Some sites serve as aggregators and allow you to preview offers from multiple lenders in one place and making for easy side-by-side comparison. But going the online route does have some issues. You may find it difficult to get in touch with a person when you need help. There’s also the risk that the online lender will share or sell your personal information. You are also likely to receive many phone calls and emails from multiple online lenders once you share your contact details with them. It’s important to check all reviews before you decide where to borrow from.

A Quick Car Loan Guide

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