If you are in the market for car finance it’s important to make sure you are paying a reasonable interest rate. Too often people pay far too much. There are several ways and hundred’s of companies who offer car finance. Car Dealers, Banks, Credit Unions, Finance Brokers etc can all offer you car finance but where are you going to get the best deal? Where are you going to find the best repayment interest rate?

Generally the answer is simple, your bank or credit union. Banks and Credit Unions are lending direct to you so there is no middle man where as if you were to use a car finance company you will often pay more (for the same money the bank is giving you). Car Finance brokers make money from adding on a few percent, on average you may pay an extra $1,000 when all is said and done just by using a car finance broker. With a car dealer, this extra amount can be even greater, but car dealers have a great advantage, often you may find yourself at the dealership, you have fallen in love with your next new car and a dealer can arrange finance for you right there, on the spot and you can drive your new car home. You may not mind paying an extra few dollars per week for the privilege.

It’s important to shop car finance brokers and banks around. Banks and Credit Unions would account for around 45% of all car finance loans written, car dealers around 30% and car finance brokers around 25%.

Shop around to give you the confidence that you know you are getting the best car finance interest rate.

Balance transfer credit cards can cut your repayments down to nothing. A credit card comparison site can be a great way to review your options. Car loans are secured against your car.