Best Place to Get a Car Loan: Bank or Dealership?

When you’re preparing to invest in a new vehicle, it’s typically a decision that requires a lot of careful financial planning and budgeting. So when the time comes to make the upgrade, where is the best place to get a car loan? Most Gastonia drivers will do their car loan shopping with a bank or a dealership, and there isn’t really one best answer for where to get a car loan.

There are several factors that can determine whether you’d benefit more from getting your loan through the bank or the dealership, and Rick Hendrick City Chevrolet’s finance center is going to help you explore them all. Keep reading to make a wise decision for your next vehicle purchase.

Car Loan Shopping: the Basics

If you’re wondering where to get a car loan in Concord, there are two main options:

• The dealership at which you’re buying the vehicle
• The bank you’re already established with, or a new bank or associated lending institution such as a credit union

When car loan shopping, there are different benefits that go along with bank loans and dealership loans, and you can explore them all below.

Dealership Financing

The dealership where you plan to purchase your vehicle can often be one of the best places to get auto loan financing for the following reasons:

• The dealership can provide trusted car-buying tips throughout your car loan shopping journey
• The dealership will have strong relationships with a wide variety of lenders, so they can help you get the most competitive rates based on your credit score
• The application process is simple at the dealership; you can even get pre-approved ahead of time with no risk to your credit score
• The dealership essentially does your car loan shopping for you and they will come back to you with the lenders offering the best rates
• Dealerships like Rick Hendrick City Chevrolet can provide auto loan options for bad credit
• You can often take advantage of competitive offers and incentives when you get your loan through the dealership
• You may have an easier time negotiating your down payment with a dealership versus with a bank

Bank Financing

For some Rock Hill, SC car-buyers, the best place to get auto financing will be the bank they’re already established with. Here are some benefits associated with financing from your bank:

• Your pre-existing relationship may help you get approved
• The interest rate is often set ahead of time, so there isn’t any guesswork
• You might manage to secure a flexible payment plan

In House Financing vs. Financing with a Bank or Credit Union

While you’re car loan shopping, it’s important to distinguish that while the dealership can pair you with an outside lender for your loan, there is also in-house financing provided by the dealership itself. Compare in-house financing vs. bank financing vs. credit union financing below to learn more:

• In-House Financing: You may also hear in-house financing called “buy here pay here” financing. With this option, your loan is secured directly from the dealership, so you don’t have to get approved by an outside lender. Because of this, in-house financing often has higher interest rates and is typically reserved for shoppers who have poor credit or no credit.
• Bank Financing: You can secure bank financing on your own, or you can get it through the dealership. If you intend to get bank financing no matter what, you may have an easier time allowing the dealership to do the legwork for you, then bring you the offers to compare.
• Credit Union Financing: Another option you can pursue on your own accord is credit union financing. This may save you money if there’s a credit union you already belong to.

Explore Financing at Rick Hendrick City Chevrolet

No matter what type of credit you have, the finance team at Rick Hendrick City Chevrolet is prepared to help you find the best place to get auto financing with a competitive rate. To learn more about the lenders we work with or our in-house options, please contact us and we will be happy to provide more information.