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

When purchasing a new vehicle, the goal is to secure as good of a deal as possible. Pursuit of this goal may lead you to wonder, “Where is the best place to get a car loan?” Car loan shopping is a wise step when planning for an automotive purchase. Below, the Serra Nissan of Traverse City finance team will discuss where to get a car loan and the best place to get auto financing for your individual needs. 

Car Loan Shopping

If you’re searching for the best place to get auto financing, your two main options when car loan shopping include:

• The dealership where you’re purchasing your vehicle
• A bank or other lending institution like a credit union

While both of these options are great, you may prefer one or the other. Our team is standing by to help you decide on the best place to get a car loan. 

Car Loans From a Dealership

A simple and convenient way to get a car loan is to secure financing at the dealership where you’re purchasing your vehicle. Advantages of selecting this option include:

• Dealerships can help you discern whether you should buy or lease. 
• Dealers like Serra Nissan of Traverse City have relationships with lenders throughout the Manistee area, making it easier to secure a favorable loan. 
• Multiple lenders will compete for your business, leading to a competitive rate. 
• Financing options for those with no credit or poor credit. 
• Financing incentives on new and used vehicles. 
• More flexibility to negotiate. 

Car Loans From Your Bank

While you may be accustomed to turning to your bank for financial services, it’s generally a good idea to work with your dealership first. Financing with a dealer can allow you to select from multiple lenders to secure a better deal. However, there are a handful of perks that come with financing through a bank:

• Benefit from your pre-existing relationship with your bank
• Fixed interest rates
• Possibility of establishing a flexible payment schedule

In House Financing vs. Bank & Credit Union Financing

As you shop for a loan, you’ll want to note the differences between financing directly with your bank, securing a loan with a dealer partner, and in-house financing. Luckily, Serra Nissan of Traverse City is here to help you sort through your options:

• Bank Financing: When you apply for a loan with a dealership, the dealer works with their lending partners to score the best deal. In this scenario, the dealer isn’t offering the financing, they’re simply leveraging their relationships with lending institutions to help you save. 
• Credit Union Financing: If you’re a member of a credit union, you may be able to secure a favorable deal on a loan with that institution. 
• In House Financing: Sometimes known as “buy-here-pay-here” financing, in-house financing is when the dealership provides a loan directly to you for your purchase. Since you don’t need to secure approval from a lender, this option is appealing to drivers with lackluster credit. However, you may have to endure higher interest rates as a result. 

Discuss Your Financing Options at Serra Nissan of Traverse City

Now that you know where to get a car loan, you can shop for your new ride with Serra Nissan of Traverse City. Upgrading your commute from Cadillac to Bellaire is easy when you rely on our team to help you find the best place to get a car loan. Shop with us in Traverse City or get in touch with our team to discuss your financing options. You can even get ahead by getting pre-qualified on our site!