The best place to get a car loan depends a lot on the needs of the person applying for the loan. There are several options that are worth checking. Researching the offers from different lenders ensures that you can find the best possible deal for you.

Dealer Financing

Car dealers usually have relationships with banks and other lenders. The dealer can connect you with a lending partner and act as an intermediary in the process. This process is convenient but could result in you paying a high-interest rate because it is likely that the dealer gets a commission. Larger carmakers also have their own in-house financing divisions, and these are called captive finance companies. If you have strong credit, you could get fantastic offers from the captive finance company.  Or you could get “buy-here, pay-here” financing where the lender and dealer are the same. This option works for people with supreme credit. The interest rates here are usually the highest.

Banks

With banks, you can get preapproved for several loans, compare the rates, and choose an offer that’s best for you. Any rates banks advertise are often for those with excellent credit. Bank financing options may also be limited by the car you want to buy. Check all details.

Credit Unions

These are non-profit organizations that return their profit to members through high savings rates, lower fees, and lower loan rates. Members get access to these low-interest loans. If you have poor credit, a credit union can be more flexible than a bank because these organizations build relationships with their members and give a personalized experience.

Online Lenders

Here, you can shop around and compare rates and loan terms without ever leaving home. There are also sites where you can check offers from multiple lenders and compare them all side by side. Online lenders are also often willing to work with people that have less-than-perfect credit, but their offers may have steep interest rates. These rates could even go as high as 25%. But if you have good credit, you could get an offer that’s lower than what a bank would offer. Service varies from lender to lender to research the lender before agreeing to any loan.