Is it better to get a car loan through a dealership or through a bank?

I'm getting conflicting advice from friends and family on whether I should get a car loan from a dealership or bank. Which is the better choice for me?

Answer provided by
avatar
Jim Donaher
Answered on Mar 08, 2021
If you can qualify for a car loan with a bank, it will almost always be preferable to dealer financing.
Dealers offer financing primarily to ease the process of getting you to buy a car. Such financing can be more costly. Dealerships act as an intermediary, working with lenders to arrange car loans for buyers. As a result, they’ll charge you a fee for handling your loan, which will make it more expensive.
With banks, their primary interest is getting the customer into a loan that suits them and that they will be able to repay. Depending on your credit score, down payment amount, and whether the car is new or used, a bank will generally be able to offer a lower interest rate than a dealer for a comparable loan.
thumb-up

Did this answer help you?

Ask us a question by email and we will respond within a few days.
thumb-up

Have a different question?

You can meet us at our office and discuss the details of your question.

Easiest way to compare and buy car insurance

√
No long forms
√
No spam or unwanted phone calls
√
Quotes from top insurance companies