Bank or Dealership: What's the Best Place to Get A Car Loan?

Long Island drivers are always trying to get the best possible deal when they visit Security Dodge Chrysler Jeep Ram to purchase a new vehicle. However, our dedicated staff still seem to receive the same question: “Where is the best place to get auto financing?” Luckily, we’ve got you covered on that topic. Find out more about what options are available to you when shopping for a car loan in Amityville.

Car Loan Shopping at a Dealership

One of the best places to get a car loan is the dealership where you purchase your vehicle. Some of the benefits of car loan shopping at a dealership include:

• You may be able to negotiate your down payment when financing with the dealership.
• The dealership is likely to offer financial incentives.
• Some dealerships even offer options for those who have credit issues. 
• Applying is easy and painless. You only need to fill out a single form to get several options.
• Dealerships work with a host of lenders to help you get the best rates available.
• Dealerships can also recommend car buying tips to make sure you’re getting the most out of your vehicle purchase.

Car Loan Shopping at a Bank

As much as we’d love our customers to do their car loan shopping at Security Dodge Chrysler Jeep Ram, we understand that the best place to get auto loan financing may be the local banks in the Amityville area. However, feel free to speak with us before applying at your bank, since we have different financing partners which will affect your rates and options. Also, if you have suboptimal credit, you’ll often have a trickier time getting a loan from a bank. Nonetheless, there are undeniable advantages, like:

• You may be able to set a flexible payment schedule
• There are often set interest rates
• You have a pre-existing relationship with your Massapequa-area bank

In House Financing vs. Bank & Credit Union Financing

While looking for the best place to get an auto loan, it’s critical to differentiate between financing that a dealership is able to secure for you from a lender such as a bank. Here’s the breakdown for all three options:

• Credit Union Financing: If you belong to a credit union, you can apply for an auto loan there, and you may save money. 
• In House Financing: In-house financing, sometimes called “buy-here-pay-here” financing is provided directly by a dealership, so you don’t need to get approval from a lender. Accordingly, it often entails higher interest rates but is beneficial for car buyers with little to no established credit. 
• Bank Financing: When you apply for an auto loan at a car dealership, the dealer sends that application out to different lenders to see where they can secure the best rate for you. In other words, they’re not actually providing the financing themselves. You can also, however, get approved before stepping into the dealer by shopping around for your own financing. 

Explore Your Financing Options Further with Security Dodge Chrysler Jeep Ram

Have any lingering questions about your car loan shopping options? Contact us at Security Dodge Chrysler Jeep Ram today, where we can put you in touch with the experts in our Finance Center or point you in the direction of our payment calculator!