Is it better to get a loan or finance through a dealership with a trade in?


Asked by RNikolai Aug 03, 2013 at 02:20 AM

Question type: Shopping & Pricing

I'm in the market for a new/ used car and have a car to trade. I also have poor credit but
have been at the same bank for years now. What would be my best option to get the best
financing rate and or trade in on my current car?

3 Answers


If I were you, I'd be inclined to try your bank first as they might be more likely to approve you for a loan at a somewhat lower rate. The Dealer will likely try to get you approved with banks that specialize in "poor credit" and you'll automatically get stuck with a high interest rates in the double digits. You'll get more money selling your car as a Private Party Sale (Why not try selling it right here on CarGurus?). Dealers are notorious for giving you much less than the car's value, so they can resell it and turn a decent profit (because they're greedy like that!).

3 people found this helpful.
Best Answer Mark helpful

@ racer_x, thank you! Really thank you! I feel like I'm speaking another language to everyone I've asked the same questions! I'm young and have never bought a new car. I am at an age where I want to be able to depend on a new car enough to spend 20-30 grand and be able to enjoy it for the next 10 years while I pay it off.

1 people found this helpful.

Glad I could help! Most car loans are for 5 years (If you can double up on a payment every now and again, you can pay the car note off that much sooner and enjoy not having a car payment until you trade it in or sell it!). Good Luck in getting the car that you want!

1 people found this helpful.

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