Here are some steps to follow when deciding where to obtain financing for a new car:
1. Find the best deal. Compare offers from banks, credit unions, and car dealers. Remember that dealer loans are often more costly than those from financial institutions. However, sometimes they can cost less if car dealers are having special promotions (for example, 0% financing).
2. Compare the total cost for alternative loans (interest rate, length of loan, any other costs, contract terms). What is the bottom line total you will pay?
3. Read all price quotes and contract information carefully before making a decision on a loan. Look for clauses that might indicate additional expenses. Compare price quotes and loan terms from at least three different lenders.
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