u/hsy71

Planning to buy a car from a private seller and thus was looked into getting a car loan directly from the bank. What surprises me is that the rates are effectively no different from what’s offered by car dealers. I have always assumed that car dealer takes commission from brokering loan and thus the interest rate includes a buffer for commission.

What also surprises me is that I can get personal loan for less interest rate ( 1% pa / EIR 2.2% for personal loan vs car loan of around 2.48 pa / EIR 4.55%). Which is unsecured loan charging lower rates than secured ?

The only catch I can think of is personal loan quantum is probably lower and tenor shorter ? What else am I missing here ?