I am very naive when it comes to car financing. I've owned 3 cars in my life- walked into the dealership & bought each one new and drove each for an average of 12 years. I've owned more houses over the years than cars.

Anyway my son will be 18 in a couple of months and as part birthday present and part graduation present I am wanting to get him a car. He has been driving a 20 year old car that I want to pass onto my next child who will soon be 16.

I have'nt been looking at all yet just trying to get a plan together. I would like it to be a reliable car because he will be going to college out of state. I am thinking in the 6-8k range and will put down approx $2500.

I have heard that the used car lots that do thier own financing have terrible interest. For this type of loan am I better going to my local bank or to the dealership or is there another option?

My scores are around 700 although I did have a chap7- 3 years ago.

If the 3 yr old BK would otherwise disqualify you from a local credit union, then probably your best bet would be a franchised dealer that had the vehicle you wanted to purchase.

I'd make one pass at a local credit union though first. Can't hurt to see them in person.