04.Car dealer finance
More than a third of people who buy a car from a car dealer use dealer finance; interest rates are similar to personal loans.
- Unnecessary insurance, such as loan protection insurance, may be included.
- Check carefully for fees and commissions. A CHOICE shadow shopper was offered an $18,000 loan with a $265 establishment fee, a $5 monthly fee and a $495 dealer fee (commission).
Tip: Do your research, get pre-approval for the best offer (such as a personal loan from a credit union), show it to the car dealer and ask them to better it.