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The cost of car loans,
a comparison
By Stephen
Rothman • Bankrate.com
Conventional wisdom says making
a car loan through the bank or credit union is cheapest, but that
may not be the case.
Four dealers were randomly selected
to price a four-year car loan. The hypothetical buyer was willing
to put down $1,000 on a 1998 Chevrolet Cavalier, the luxury four-door
model, with a manufacturers recommended price of $14,250. We asked
the dealers to presume the buyer had average credit.
The dealer rates in those cities
were compared to area bank rates for the week ending June 12 as
published by Bankrate.com.
|
Interest Rate
Offered by Dealer
(and resulting interest)
|
Interest Rate
Offered by Banks
(and resulting interest)
|
Herndon
Chevrolet
Lexington, S.C. |
7.25% - 8.75% |
8.92% - 9.43% |
| ($2,054
- $2,502) |
($2,553
- $2,707) |
Alley
Chevrolet
North Seattle, Wash. |
7.75% |
7.80% - 10.08% |
| ($2,202) |
($2,217
- $2,904) |
Bill
Wink Chevrolet
Dearborn, Mich. |
7.25% - 9.25% |
8.00% - 9.25% |
| ($2,054
- $2,652) |
($2,277
- $2,652) |
Roger
Dean Chevrolet
West Palm Beach, Fla. |
7.90% - 8.90% |
7.75% - 10.50% |
| ($2,247
- $2,547) |
($2,202
- $3,034) |
-- Posted: June 15, 1998
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