AUTO LOAN VS DEALSHIP LOAN?

I wish to get an automobile loan from a bank such as Bank of America, or any bend of Credit Union. I was wondering what is the disproportion in between removing your own automobile loan from the bank, and a loan which a 3rd celebration (the dealership) get for you?

Since my hermit is going to co-sign my loan, he told me which he wish me to collect a car from the dealership and I will cosign it for you, but I won’t cosign the automobile loan from the bank. He pronounced it’s dual all opposite thing. So can someone insist to me the difference?

Thank you
Yes, which is what I additionally thought, the co-signer has the same requisite either it’s a loan from the automobile dealership and an automobile loan from a bank.

My hermit think which if I squeeze a car from the dealership, they will usually need him as a co-signer to get me a improved credit rating in sequence to for the loan to get approve. I think he’s fearful which if I get an automobile loan from the bank and can’t have the remuneration they will take his house.
So in the end, removing an automobile loan from a bank is the same as removing an automobile loan from a dealership right? The co-signer has the same shortcoming is which correct?

{ 3 comments }

Dave March 4, 2014 at 9:31 pm

There are two different kinds of loans that Dealers usually offer. Either a loan from the finance company that the car company owns like GM Finance or Toyota Finance or loans from Banks or even credit unions.

Your age, income, and credit history will determine which ones you qualify for. Each offer different loans rates based on the criteria I mentioned. Many of the loan companies give the dealer a percentage of the loan if the dealer goes with them. If you go directly through a bank or credit union you will avoid this extra cost on your loan which is usually 1% of the loan amount.

As for a co-signer the obligation is the same whether at a bank, credit union or finance company. If you don’t pay the loan they will go after the co-signer and all of them will do everything they can to get their money and repossess you car.

They can only repossess the car not the house unless he puts the house up for collateral (do not do this ever for any loan). But it could end up damaging his credit rating making it hard for him to borrow money.

SPIFIMAN1 March 4, 2014 at 10:11 pm

Auto finance is what I do for a living and yes as far as co-signers go there is no difference between a loan from your bank or one from the dealer.

Co-signers are equally responsible for making sure the payments are made.

bdancer222 March 4, 2014 at 11:08 pm

The third party lenders that car dealers use are often banks. There is no difference between a loan from a bank or thru the dealer. Co-signers are on the hook for the loan.

If you go to a bank or credit union and get pre-approved for a car loan, you may be able to get a better interest rate than what the dealer’s lenders offer. You definitely are in a position to negotiate better pricing on the car since you have your financing in hand.

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