Bank Car Loan

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Is a bank car loan the best?

Banks are such huge and prestigious financial institutions that quite often we all use them as a first port of call for any loan or credit card that we want. Their wealth of knowledge and reputation often bowls us over so much that we forget about other options open to us. Is a bank car loan the best, or should we be looking for other sources of autoloan?

Let's look at the reasons for and against taking out a bank car loan:

For

  1. Banks have huge financial pedigree and status. They have a reputation you can trust and believe in. If you choose to approach the bank that you have your checking account with, you already have an established relationship with them and feel comfortable with the company
  2. If you go to your bank for a bank car loan they may offer you a preferential interest rate as they want to increase their portfolio of products with you.
  3. It's easy to manage financially if you keep all your loans, credit cards and bank accounts in one place
  4. As the auto loan market has become increasingly competitive over the past few years, banks have been reducing their acceptance criteria to try and increase their market share. This means that people with less than perfect credit histories can obtain a bank car loan

Against

  1. A bank car loan may be easier logistically but a bank may not necessarily offer you the best auto loan interest rate. There are numerous specialist lenders, many of which can be found online, that offer better rates than banks can
  2. Banks are not auto loan specialists. They do not have a passion for cars that smaller companies that have dedicated themselves to finding the right auto loan for you may have
  3. If you decide to take out a bank car loan would you just become another face in a crowd? Would you be transferred from department to department if you ever needed to contact them? If you prefer a more personal touch than a bank car loan may not be for you.
  4. It sounds great having one point of contact to manage all of your financial commitments but does this just mean that you are being lazy? What about focusing on finding the best auto loan rate and monthly repayment plan for you?

A bank is a very good source of auto loan but this does not mean that you shouldn't investigate all other avenues open to you. Talk to credit unions, auto loan specialists and search online for the best car loan product for you. As long as you pick a reputable company, quite often it doesn't matter who supplies you with the loan. It may end up that a bank car loan proves to be the best option but it's always worth checking first.