Bank or Dealership: What's the Best Place to Get Auto Financing?

Finance Paperwork with Glasses
 

Car loan shopping should be fun, but car loan shopping to get financing for a vehicle that fits your budget and needs can be difficult at times. When looking for where to get a car loan, the two main options are a bank (or credit union) or the dealership where you’re purchasing your vehicle. One of the questions we hear a lot at Short Redmond SuperStore is, “Is the best place to get auto financing at a dealership or bank.” Both options have their benefits, which we’ll weigh here, and then you can contact our friendly finance center experts with any questions you may have.

 

 

Car Loans From a Dealership

When you’re shopping for a new vehicle, oftentimes, the best place to get auto financing is the dealership where you’re buying your vehicle. Dealerships typically offer more flexibility in their financing options, as well as special offers and incentives that can help you save on your auto loan. You’ll only have to apply one time with the dealership to see which of their many financing options you qualify for. Furthermore, dealerships are typically more willing to work with Lexington drivers who have less-than-perfect credit or no credit at all. And, when you finance your auto loan through the dealership, you might be able to negotiate the amount of your downpayment.

One of the drawbacks of financing with a dealership is that you might be subject to higher interest rates. However, if you’re in a difficult credit situation, it’s better for you to get financing through a dealership than a bank, and we’ll show you why in the next section. 

Car Loans From a Bank or Credit Union

There are also some benefits of financing your loan through a traditional financial institution like a bank or credit union. Your chances of getting a loan from a bank where you have an open account in good standing could increase your chances of getting approved for a loan, which is critical because banks and credit unions usually have higher standards for auto loan approval. Another advantage of going through a traditional financial institution is they charge lower interest rates on their auto loans. However, if your credit isn’t up to par, good luck getting an auto loan from a bank, even if you have an account there.

Discuss Your Financing Options at Short Redmond SuperStore

If you’re ready to upgrade the way you get around the Lexington area, you can contact us or apply for financing online to begin the buying process. At Short Redmond SuperStore, we’re committed to getting you behind the wheel of a vehicle that fits your budget and needs.

 

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