Car buyers are often skeptical of dealers when it comes to financing their cars. There are stories about how banks are easier to deal with, how dealers always charge too much in interest, and how they make more money when your monthly payment is higher. None of these are true.
The reality is that financing a car at a dealership, bank, or credit union is about the same across the board. In fact, if there’s any advantage to the consumer, it’s to use the dealership and their list of multiple lenders rather than to take the terms that the banks or credit unions have. The easiest way to think about it is this: banks and credit unions make their money off of loans, while car dealers make their money off selling cars.
In this infographic, the basics of the process are explored so that car shoppers can be prepared next time they’re in the market.
