Department | Used Car Loans

Should I Get an Auto Loan from My Bank, Online, or from the Dealership?

The pressure of finding a new car and a reasonable auto loan can lead to significant stress. New cars can be tailored to any individual’s needs, which leaves buyers with a world of options. Finding the perfect car for you is the easy part, but financing that car is the hard part. Should you finance at the dealership? Or maybe at a bank? What about online auto lending? It can be tricky figuring out the best way to finance your car.

Buyer Beware

Dealerships are going to do what a dealership does: try and sell you things. The process does not stop after you buy the car; it continues into the loan portion of the purchasing process. Dealerships weren’t created to find the best loan possible for you; in fact, their loans are usually the worst loans possible. They come with higher interest rates, stricter stances on credit, and a generally less appealing terms. They are not going to go the extra mile in order to help you get a loan that will save you money. So why would anyone get a loan at the dealership? Convenience is really the only reason. You have already bought the car, and you want to drive home in it today, so why not close on the loan at the dealership? Banks are usually not open on weekends, and that’s usually when most people buy their cars.

There Is Another Way

The best way to get around this issue is to apply for a loan somewhere else. The bank that you do business with is probably one of the best options you have when it comes to interest rates. They will help to make sure you are getting a fair loan. If your bank does not qualify you for the full amount you desire, you can also apply for an auto loan online. Online websites usually give comparisons of many different lenders, making the loan shopping process even easier for you. Online lenders also work 24/7, so you do not have to wait until normal business hours to finance your car.