DETERMINING WHETHER
TO FINANCE WITH:
THE CAR DEALERSHIP
or
YOUR OWN BANK
or
YOUR CREDIT ONION

YOU CREDIT UNION NORMALLY
HAS THE LOWEST INTEREST RATE.
HOWEVER, I HAVE SEEN A FEW
INSTANCES WHERE THEY DID NOT.

THE REASON THE CREDIT UNION
HAS A LOWER RATE IS BECAUSE
THEY BUY THE MONEY FROM THE
FEDERAL GOVERNMENT AT THE
SAME FEDERAL DISCOUNT RATE
AS BANKS BUT THE CREDIT UNION
DOES NOT MARK UP THE LOAN
TO YOU AS HIGH AS A BANK
BECAUSE YOU ARE THEIR
EMPLOYEE AND THEY
AUTOMATICALLY WITHDRAW
REPAYMENT EACH WEEK.

BEFORE GOING TO THE NEW CAR
DEALERSHIP YOU SHOULD KNOW
ALL OF THE INTEREST RATES OF
THE LOCAL BANKS AND YOUR
CREDIT UNION.

IF YOU HAVE EXCELLENT CREDIT
CAR DEALERS CAN OFFER YOU A
LOWER RATE THEN YOUR LOCAL
BANK.

IN FACT, THEY CAN OFFER YOU
A LOAN FINANCED THROUGH YOUR
LOCAL BANK FOR A LOWER INTEREST
RATE THEN YOU CAN RECEIVE FROM
YOUR OWN BANK.

THE REASON IS BECAUSE YOUR
LOCAL BANK MAY BE AFFILIATED
WITH THE NEW CAR DEALERSHIP.

LOCAL BANKS WRITE 90% OF THEIR
AUTOMOBILE LOANS THROUGH NEW
CAR DEALERS.

THE LOCAL BANKS GIVE THE CAR
DEALERS A BUY RATE LOWER
THEN THEY ARE OFFERING TO
THE GENERAL PUBLIC.

THIS STREAMLINES THE BANKS
OPERATIONS AND THEIR ABILITY
TO HANDLE LARGE VOLUMES OF
AUTOMOBILE LOANS.

THE CAR DEALERSHIPS SEND ALL
OF THE COMPLETED PAPERWORK
TO THE BANK AND THE BANK SENDS
THE CAR DEALERSHIP A CHECK IN
THE AMOUNT FINANCED BY THE
CONSUMER.

THIS KEEPS DOWN OVERHEAD AND
CLERICAL COSTS FOR THE BANK.

AS LONG AS THE CAR DEALER
OFFERS YOU A COMPETITIVE
INTEREST RATE VERSUS YOUR
LOCAL BANK IT IS EASIER TO
FINANCE WITH THE DEALERSHIP.

HOWEVER, IF THE DEALERSHIP
TRIES TO RAISE THE INTEREST
RATE WHEN YOU PICK UP THE
VEHICLE BE PREPARED TO
WALK OUT WITHOUT TAKING
DELIVERY OF YOUR VEHICLE.