Best way to finance a car in today’s market?

M

Martinez2010

Member
Hi, I’m planning to buy a car priced around $28,000 and would appreciate some advice on financing options. I’ve got about $5,000 saved for a down payment and excellent credit.

Should I go with dealer financing, a bank loan, or a credit union? I’ve heard credit unions often offer better rates, but I’m not sure how they compare to dealer incentives. Also, are there benefits to shorter loans like 48 months, or is it smarter to go for a 72 month term with lower monthly payments?

Any tips to avoid common mistakes or save on interest would be super helpful. Thanks in advance!
 
This is a pretty broad question since it depends on your finances, driving needs, and the kind of financing you prefer. Generally, though, a loan from your bank is often cheaper than financing directly through a car dealer.
 
Credit unions usually offer lower rates than dealers or banks, so check their offers first. A shorter term like 48 months saves on interest but 72 months can help with cash flow if needed
 
Credit unions offer lower interest rates than banks or dealers, but dealer incentives can sometimes be better. Get preapproval from a credit union or bank first, then compare it to dealer offers to make the best decision.
 
Get pre-approved with your bank to know your rate, then compare it with dealer financing offers like 0% APR. Choose the lowest total cost
 
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