Bank or Dealership: What's the Best Place to Get Auto Financing?

Financing with a Bank or Dealership: What’s the difference? 

Here at Basil Chevrolet Inc., it’s our pleasure to help our customers get into a vehicle they’re excited about for a price they feel comfortable with, but the question Jamestown shoppers ask most is; “Where is the best place to get a car loan?” The short answer is: the fiance center at Basil Chevrolet Inc.! Keep reading as we will dive into the most pressing car loan shopping topics and explore what your options are when looking for a car loan near Fredonia.

Car Loan Shopping

If you are wondering where to get a car loan, your two main options when car loan shopping loan include:

• The dealership where you’re purchasing your vehicle
• A bank or other lending institution like a credit union

Car Loans From a Dealership

One of the best places to get a car loan is the dealership where you purchase your vehicle.

• Dealers can help you determine if leasing vs. buying is right for you.
• Dealerships work with a variety of lenders to get you the best rates possible.
• It is easy to apply. You only need to fill out one application to get multiple options.
• Multiple lenders are competing for your business, which can lead to a better rate.
• Some dealerships offer options for those who have issues with credit.
• The dealership may offer financing incentives.
• You may be able to negotiate your down payment when financing with the dealership.

Car Loans from Your Bank

When deciding on where to get a car loan, you might think of trying your local bank around Dunkirk first. Speaking with your dealership before applying at your bank is actually a good idea because each dealership has different financing partners. If you have less-than-perfect credit, you will have a harder time getting a loan with a bank. Despite this, there are some benefits, including:

• You have a pre-existing relationship with your bank
• There are often set interest rates
• You may be able to set a flexible payment schedule

In-House Financing vs. Bank & Credit Union Financing

When you shop for an auto loan, it’s important to differentiate between financing that a dealership is able to secure for you from a lender such as a bank, dealership that the dealership itself offers in-house, and financing you seek out yourself by sending out credit applications to different banks or by using a service, such as Lending Tree or Capital One Auto Loan Navigator. Here’s what you should know:

• Bank Financing: When you apply for an auto loan at a car dealership, usually, the dealer sends that application out to different lenders to see where they can secure the best rate for you. In other words, they’re not actually providing the financing themselves. You can also, however, get approved before stepping into the dealer by shopping around for your own financing.
• In House Financing: In-house financing, sometimes called “buy-here-pay-here” financing is provided directly by a dealership, so you don’t need to get approval from a lender. Accordingly, it often entails higher interest rates, but is beneficial for car buyers with little to no established credit.
• Credit Union Financing: If you belong to a credit union, you can apply for an auto loan there, and you may save money.

Discuss Your Financing Options at Basil Chevrolet Inc.

If you have additional questions about your financing options, feel free to contact Basil Chevrolet Inc.. The experts in our finance center near Westfield will be happy to address your concerns and walk you through the financing process!