Which Car Loan is Best – Dealership or Bank?
Whether you’re searching for a new or used car in the Charleston area, it’s likely that you’ll take advantage of car financing. However, it’s important to do your research before you sign papers at the dealership so you can ensure that you get the best interest rates and lowest monthly payment available. Find out whether financing through the dealership or through a bank or credit union is best for you, then rely on the Land Rover Charleston finance department to walk you through the process!
How to Find the Lowest Rate
There’s no surefire way to tell whether your dealer will offer a lower interest rate than your bank; in many cases, dealer financing is actually the same as bank financing. The dealer simply goes to the bank and does the legwork for you. However, it can be beneficial to go to your bank before choosing your vehicle so you can find out their rate first. Then, you can compare that to your dealer’s and see if your dealer can match the rate if the bank’s is lower.
- Pros: Automakers will occasionally have promotions where they offer very low interest rates on new cars, which a typical bank wouldn’t do. Dealers will also “shop around” so to speak, and will find the best bank rate in the area.
- Cons: Dealer financing is a common option because it offers the simplest route to buyers – they can choose and finance without leaving the dealership. However, it’s important to ensure that your dealership isn’t marking up the bank’s rates in order to make money.
- Pros: The main advantage of car financing through a bank is that they won’t mark up interest rates as some dealers might. Because of this there’s no middleman, so rates could potentially be better.
- Cons: You can negotiate interest rates with your dealer, but banks will typically offer just one rate. They also won’t shop your credit around to lenders like dealers do.
Rely on Land Rover Charleston for All Things Finance
Whatever financing route you choose, you can count on our experienced finance department to help you through every step of the way. Contact us for more information, and make your way to our Charleston dealership to browse our new vehicle inventory in person!
More From Land Rover Charleston
If you’re ready to upgrade with a new vehicle but have an old car you need to offload, then you may be asking yourself the question, “How does trading-in a car work?” When you work with Land Rover Charleston, the process doesn’t have to feel like a chore. Keep reading to learn how to get the best…
When you’re ready for a new Land Rover in the Huntington area, you have two options. You can buy a car or lease a car. These two financing choices offer different benefits, so it’s important to understand both options before making any decisions. We’re comparing leasing vs. buying to help you figure out which automotive…
The search for a third-row family vehicle that can still provide luxury amenities and incredible performance is over! Land Rover offers multiple vehicles for Huntington families to choose from that provide the style and power they desire while maintaining the space necessary for a growing family. Explore the Land Rover third-row SUVs, and their features,…