The days when car sellers choose cash over credit are well past. Nowadays sellers sell both their cars and credit loan. This means seller gets two separate commision from you. While most of the customers are very careful when choosing the car they are buying, they tend to do little for their loan. This behaviour is an advantage for the seller, because he will get better commission in any case where customers are careless enough.
There are many cases the buyer might get screwed up. They usually have to repay their loan whatever happens if there is not a special clause in the contract.The customer usually has to pay the lender the gap between loan balance and the insurance contract. Some lenders are possible to enforce a penalty for premature payoff. The buyer is obliged to have full coverage insurance, it should be verified that this insurance covers the vehicle in the case of a theft. GAP is the type of insurance that covers the difference between the amount remaining on your loan and assessed value of the vehicle at the time of the accident or theft. The loan contract should give you the ability to make payments early and those payments should be applied to the loan principle. Also be sure that there is no penalty if you repay the loan earlier than you should.
It is better to get a new car loan, rather than a used vehicle loan. A lender will always give better options to a new car buyer. Conversely, a higher rate is usually assigned to a second-hand car, which already has a unknown starting value.
Some of the dealers have their own financing agencies, but their services are very questionable in quality. Rates and terms they offer varies depending on the model and the time of year. Conditions are not advantageous in late spring, when people want to buy new cars as they look toward the summer. The best purchases are at the end of the year. Most dealers want to close the year with good selling numbers.