Bank vs. Dealership: Where is the Best Place to Get a Car Loan?

 
What’s the best place to get auto financing in Iowa City? Should you opt for the traditional route by financing with a bank or other financial institution, or might you benefit more by working with your dealership instead? Many new car buyers find car loan shopping faster and easier when working with a dealership, but both options offer unique benefits. At the end of the day, determining the best place to get a car loan is a personal choice! Below, we compare the pros and cons of each path so that you can start off right on your car loan shopping journey.

Before You Start Car Loan Shopping…

If you’re unsure where to get a car loan, take a moment to learn more about your options. Generally, auto financing opportunities fall into two categories:

• Financing “in-house” through your dealership
• Financing with a bank or Waterloo-area credit union

Neither is objectively the best place to get auto financing, but one may offer more benefits for a buyer in your situation.

Benefits of Financing With Your Dealership

• Your dealership has relationships with a variety of lenders in the Cedar Falls area. They will apply for loans on your behalf and help you secure the best rates available.
• Car loan shopping is easier with your dealership! Instead of applying to multiple lenders yourself, you’ll only need to fill out a single application form.
• If your credit score isn’t as high as you’d like it to be, working with your dealership can make it easier to get approved.
• Most dealerships offer special incentives and finance deals.
• Your dealership may be open to negotiating your down payment amount.

Benefits of Car Loans from Your Bank

• You may be eligible for financial benefits if you have a longstanding relationship with your bank or credit union.
• Many banks offer set interest rates for auto financing.
• It may be possible to set a flexible payment schedule.

Learn More About Auto Financing at McGrath Family of Dealerships

Questions about where to get a car loan or how car loan shopping differs from car lease shopping? Our auto finance experts are here to help! Contact us to learn more about auto financing, auto leasing, and our fast and easy exchange process.