Car Loan Glossary nb

In NB, what should I know about dealer-financed vs bank loan for car loans?

In New Brunswick, navigating car loan options involves understanding the distinct advantages and considerations of dealer-financed versus direct bank or credit union loans. Dealer financing offers significant convenience, often allowing for a seamless, one-stop shopping experience where vehicle selection and loan approval occur simultaneously. This channel is particularly attractive for new vehicles, as dealers can offer manufacturer-backed promotional rates, such as 0% or exceptionally low APRs, which are typically unavailable through traditional lenders. However, outside of these special programs, dealer-arranged financing, where the dealer acts as an intermediary with various financial institutions, might sometimes include a slightly higher Annual Percentage Rate (APR) due to potential dealer compensation.

Conversely, securing a loan directly from a bank or credit union often provides highly competitive rates, especially for borrowers with strong credit histories, and allows for pre-approval

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