Which is the best way to finance a car?

Question

Which is the better deal for purchasing a car? Buying from a private party and getting financing from a bank, or buying from a dealer, and having them finance you? What are the differences?

Answer 1

Private sales + bank (or credit union)

Getting a car from a dealer makes everything convenient (one stop shopping).  But that convenience should NOT cost thousands of $$$.

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MSNBC had a news story on where is the best places to buy used cars. The used car dealers were on the BOTTOM of the list. They are pros at negotiations (and you and I are rank amateurs), they are pros at hiding problems on their cars, etc.

The private sales (newspaper, etc.) were the best places. The seller will not tell you all the problems, but they don't know how to hide them.

And a private seller are at MOST they are equal in negotiation skills to you and me.

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My 94 Civic can get 41 MPG (and I was doing 72 for the mileage test). The engine + tranny + suspension runs like new. It ain't no beauty but it is rock solid. If I had to sell it, I would not get more than few thousand dollars. This is the kind of car you want to look for.

Just take your time, as good old used cars are cheap but hard to come by.

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Here's some rules you should consider when buying a used car

(1) don't get sold on the paint job = meaning cars having good exterior, fancy CD radio, etc.

(2) look for car with sound ENGINE + TRANNY + SUSPENSION.

(3) test every button, k**b, switch, slider, etc.. Ex: even in the summer test out the heater & even in the winter test out the AC (if you can).  Slide the AC/heater to fan1, fan2, fan3, etc.  then slid the vent to defrost, front, bottom, etc.  Test the high beam, low beam, etc.  Test (flip) the visor.  Test the alarm.  Test all 4 doors.  Test the rear defogger.

  *****   TEST EVERYTHING.

(4) BEFORE the first start, open the engine bay and see if the engine is already warmed up.  Many engines starts well when already warmed up, but may have problems when cold (or cold start).

(5) test drive with the sound system off and window down. Listen for weird sound coming from the wheels & suspension.

(6) Look inside the engine bay to see if you can see see leaks, etc.  It is normal to see some oil and grease.  But too much means that the car is leaking oil somewhere. Too clean (really clean) means they just wash the engine bay - possibly hiding some oil leaks.

(7) check the engine oil dip stick. If the oil is BRAND NEW CLEAN, the seller MIGHT be hiding something.  If the oil is jet black and /or smells like gasoline (or burnt), you might have engine problem).

(8) once you are satisfied with the above - you can NOW take it to the mechanic for the engine + tranny + suspension inspection.  He won't find everything, but he will find the obvious.  Take it to a mechanic EVEN if you are buying from a used car dealer.  They cars are NO better than cars you buy from ebay and craigslist.com.  Just more expensive.

Good Luck...

Answer 2

Visit any bank.