Is it cheaper/more flexible to buy a car with a loan from a bank or the dealer?
It all depeneds on your circumstances. If you are buying a car that is new, or sometimes nearly new from a reputable dealer you can sometimes get 0% interest deals or low interest rates i.e 3.9%. They tend to use reputable finance companies. Sometimes they have options schemes where you can pay an amount for three years and then either pay the final amount or trade your car in for a new model. (Depending on the monthly repayment you chose, if you go with the final payment you may have to take another loan out to cover this). Now if the dealers less reputable, particuarly if your credit rating is not top notch, normally you will end up paying more than what most banks will offer you. You will normally get hit for overpaying with these two options as well. To sum up, its a hard question to answer without knowing the full details but the rule is….
