Should you get a car loan from the dealer or another lender?

I want to get a car loan, but I'm not sure whether to use a dealership or another lender. Which is the better option?

Answer
Great question! Generally speaking, you can get the best rates from banks and credit unions on a car loan, but that isn’t always the case. Shopping around is always the best idea when you’re financing a vehicle.
You should always start with banks and credit unions to get preapproval. Once you have this, you know how much you can spend and may even be able to use the preapproval as a price negotiation tool.
After you’ve picked out a vehicle, the next step is to see what the dealer can do. Sometimes dealerships will offer promotional APRs as low as 0%! As a result, asking will never hurt. Once you’ve shopped rates, you can make the best choice for your financing needs.
And since you’re shopping financing rates, don’t forget to peruse the market for your car insurance! One easy way to do this is through the Jerry app—we’ll get you customized quotes from top insurers in seconds, so that all you have to do is choose the deal that works best for you.
Best of luck on your car loan—and enjoy your new ride, too!
Eric Schad
Answered on Oct 25, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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