When you're ready to buy your next vehicle, you'll most likely be tasked with obtaining financing for the purchase. This means you'll have to decide if you want to get your car loan from the dealer or from a bank. As you might expect, the answer varies.
Start by getting car loan quotes from banks
To be sure you're getting the best deal on your car loan you should shop around and get a sense of the most competitive interest rates. Banks will competitively price their loans, which will give you a chance to see what a good deal looks like.
Getting a loan from your bank can prove to be the better option, particularly if your credit score is strong. If you make credit card payments on time and manage your money well, you may be rewarded with a very competitive interest rate.
Next, look into car loans from the dealer
Some car dealers are more willing to negotiate loans than others. Make sure you do your research and get a good understanding of what terms and rates are out there. Once you know that, you can compare those rates and terms against those of the bank.
If the terms and interest rates are similar, you'll need to consider other elements of the loan to determine the better option.
The car loan from the dealer may have better interest rates and monthly payments if you also qualify for rebates and discounts.
Beware of interest rates that change after you've purchased your vehicle. Since the loan officer you work with at the dealership is not the final authority on the loan (the lending institution facilitating the loan is) the interest rate may change. You'll avoid this possibility by working with a bank on a direct loan.
Get a car loan quote from CIBC
By starting your conversation with CIBC, you'll discover how much you can borrow and at what interest rate. Call a CIBC advisor at 1-866-525-8622 to get started.