They obtain the best market value and provide you financing for approximately 66% of the automobile's cost to you, the buyer in the best cases. Their loan operations are excellent because they have the best information in the automobile industry. They have the certified blue books, which show the appraised value of every model of car made in the world. They also keep a close association with all the automobile dealers in town, throughout the state and sometimes out-of-state whenever Interstate commerce laws allow it.
Therefore your local bank has the best information on all the best bargains in used and new cars. It is certain that you won't have to worry about getting a good deal if you have a good credit report. This insures your rating in the eyes of your bank bringing such benefits as lower interest rates and longer loans. Now this is the bright side of the coin, what I have to tell you next is the dark side of the car loan fable.
Throughout the city and state there are numerous used car sales lots. Many
streets here in town are elbow to elbow with used car lots. They look attractive
and their price tags seem just right. The prospective buyer should exercise
extreme caution before financing a used car from any unknown automobile car lot.
First, there are many used car dealers who charge outrageous interest rates on
the cars they sell.
They can do this because in our state, the state legislature has voted that
used car dealers bear an extreme risk when financing any car from their
inventory to a person with questionable credit. This is the "usury allowance"
laws which have allowed bad car deals and legalized loan shark businesses to
thrive throughout America. Our state isn't the only one, where greed and
avarice dwell you find similar programs. You see a car that really is the one
Maybe your credit isn't in such good shape so the bank can't help as much as you
wanted. The "Triple Nasty Car Dealership" offers you financing, free tags and
sales tax on the car of your dreams. Only it becomes a nightmare quickly when
you decide on a car you really can't afford. The interest rates on your car
payment far exceed what your license tag or sales tax. In fact you can be making
payments of over a thousand dollars a month for a five year old vehicle.
A young friend of mine, desperate for an automobile, bought a used car that she
had to pay a weekly car loan payment. Her credit risk according to the car
dealership, warranted a loan rate of 258%. The closing statement is this, make
your car loan from a recognized bank and get a manageable rate. If you cannot
finance from a bank, or a lending association carefully look into the repayment
terms offered by the dealership. If they are exorbitant or too costly then don't
sign the loan papers, just walk away!