Financing Your Car Through the Bank vs. DealershipMarch 26, 2021
When it comes to purchasing a car, one of the most important decisions you will make is how to pay for it. Unless you have the full amount upfront (and few people do), you’ll need to look at financing it through your banking institution vs. dealership, but which is better?
Financing Your Car Through the Bank
Most people’s first thought is to go straight to their bank for financing, but the bank is not always the best option. In order to qualify for a loan at your banking institution, you’ll need to have a good credit rating. If your credit score isn’t up to par or you’ve experienced a past bankruptcy, you might not be able to qualify.
The bank will only offer you the financing options that they have. And depending on the institution, they may not have the best rates and terms for the type of car or age of the vehicle you wish to purchase. If another bank has lower rates or better terms, your bank will not be inclined to tell you.
Financing Your Car Through the Dealership
Financing at the dealership is often the best option. Most dealerships work with multiple banks that offer both prime and subprime lending. This means that you can often get approved for the best rates and terms available, even if you have damaged credit. The dealership is also not as concerned about your previous credit history. They will focus primarily on whether or not you can service the debt today and into the future. In most cases, you can also get a much lower interest rate on both new and used cars than you would with the bank. Your dealership will likely be able to approve the loan much faster than the bank will, saving you time and energy.
Figuring out how to get the best financing for your car is important. At Seaway Hyundai, we make every part of the car buying process as easy as possible for you. You can apply for auto financing directly on our website in a few minutes, and then once complete, one of our financing specialists will be in touch with you to help build an auto loan specific to your needs. Got poor or damaged credit? No problem, we can approve damaged credit or past bankruptcy clients as well. Visit our website to try it today!