Buy vs. lease Find a leasing company Lease protection under the law Shopping for a car loan Shopping for a car loan Several sources for car loans exist.
Dealers offer financing, often through the finance arm of the automaker.
Usually, the interest rate charged by these finance companies are higher than those available at local banks or credit unions. However, for many buyers, this may be the only available credit source depending on their level of credit risk. Used-car financing Auto insurance Dealers push financing with their finance companies because they receive money for every car loan they arrange. If car sales are slow and the manufacturer wants to stimulate buying, it will sweeten financing deals considerably. In the most extreme cases, automaker finance companies tout zero percent financing.