Dealer or Bank/CU Financing?

[Anonymous]

Which one would you recommend and why?

[jl4]

Always go for bank first. Dealers have incentives to offer certain loans at certain rates. They very much get kickbacks and it’s rarely in your best interest... this includes manufacturer financing. 

[Anonymous]

What about when you have an existing loan that you're going to roll over?

[jl4]

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@Anonymouswrote:
What about when you have an existing loan that you're going to roll over?

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Like as in a trade? I’ve always been taught to bring that up last when at the dealer so you can get the best deal on the car without it being contingent on your trade being of a certain caliber or them holding it “hostage” to get you to buy.

[Anonymous]

Yes. In my situation (right now im 2.5-3k under water on my car) would it still be recommended to talk to a bank first? I would assume you would have to bring that up to the bank when you're seeing how much they are willing to lend you.

[jl4]

Most banks won’t loan for more than 100% LTV (basically the price of the car and extras).

do you have a down payment? If you have a down payment, that could help with clearing out that “water”.

[Anonymous]

Yes about 2500-3000.

[jl4]

Then if you can break even on the car and walk into the dealer with your own financing, you might be good to go in asking them to take the car off your hands for $0 trade in.

Also if you have a CarMax in your area, they’re pretty good about buying anything without trade.  

Thats about the extent of my knowledge in this area 🙊

[Anonymous]

Here in PA we have CarSense (practically same thing). Yeah. For sure.