Which Car Loan is Best – Dealership or Bank?

January 25th, 2018 by

Couple Getting Finance Opinion

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.

Dealer Financing

  • 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.

Bank Financing

  • 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 on how car financing works, and make your way to our Charleston dealership to browse our new vehicle inventory in person!

More From Land Rover Charleston

  • 10 Fun Facts You Didn’t Know About Land Rover

    For well over half a century, Land Rover has been a benchmark among high-performance SUVs for folks in Huntington and Parkersburg. There might be a lot of things you didn’t know about Land Rover–learn some of the lesser-known ephemera of Land Rover trivia. Then explore more Land Rover history, and choose Land Rover Charleston for your…

  • Why is Tire Rotation Important?

    If you own a vehicle, you know that regular vehicle maintenance is important for the safety and longevity of your vehicle. This includes things like oil changes, battery tests, replacing fluids, and even tire rotation. But why is tire rotation important? The fact is that tire rotation not only increases the life of your tires,…

  • How to Jump Start A Car

    There are a variety of reasons why your battery may die that requires you to jump start your car. Sometimes it just occurs because the battery is getting old, or sometimes you leave interior or exterior lights on that drain the battery overnight. If you are ever in a situation where your battery is dead,…

Posted in Finance