Which Car Loan is Best – Dealership or Bank?
Whether you’re searching for a new vehicle or used car in the Harvey area, it’s likely that you’ll take advantage of car financing. However, it’s important to do your research before you sign papers at the dealership so you can ensure that you get the best interest rates and lowest monthly payment available. Find out whether financing through the dealership or through a bank or credit union is best for you, then rely on the Leson Chevrolet finance department to walk you through the process!
How to Find the Lowest Rate
There’s no surefire way to tell whether your dealer will offer a lower interest rate than your bank; in many cases, dealer financing is actually the same as bank financing. The dealer simply goes to the bank and does the legwork for you. However, it can be beneficial to go to your bank before choosing your vehicle so you can find out their rate first. Then, you can compare that to your dealer’s and see if your dealer can match the rate if the bank’s is lower.
- Pros: Automakers will occasionally have promotions where they offer very low interest rates on new cars, which a typical bank wouldn’t do. Dealers will also “shop around” so to speak, and will find the best bank rate in the area.
- Cons: Dealer financing is a common option because it offers the simplest route to buyers – they can choose and finance without leaving the dealership. However, it’s important to ensure that your dealership isn’t marking up the bank’s rates in order to make money.
- Pros: The main advantage of car financing through a bank is that they won’t mark up interest rates as some dealers might. Because of this there’s no middleman, so rates could potentially be better.
- Cons: You can negotiate interest rates with your dealer, but banks will typically offer just one rate. They also won’t shop your credit around to lenders like dealers do.
Rely on Leson Chevrolet for All Things Finance
Whatever financing route you choose, you can count on our experienced finance department to help you through every step of the way. Contact us for more information, and make your way to our Harvey dealership to browse our new vehicle or low mileage used vehicle inventory in person!
More from Leson Chevrolet
Schedule Service Service Specials Regularly changing your car’s oil is critical to the health of the vehicle. Find out how it works in this guide: Engine oil keeps the many parts in your engine running smoothly and prevents overheating. Over time, the oil becomes dirty and becomes ineffective. To replace the oil, a qualified technician…
More Blogs It’s that time of year again, Mardi Gras! This mid-winter festival celebrates Fat Tuesday, the day before Lent. During New Orleans Mardi Gras, parades and celebrations line the streets, and locals and visitors alike gather to enjoy the festivities throughout the first two weeks of February. 2018 New Orleans Mardi Gras Parade Schedule…
Online Shopper Whether you’re searching for a new vehicle or used car in the Harvey area, it’s likely that you’ll take advantage of car financing. However, it’s important to do your research before you sign papers at the dealership so you can ensure that you get the best interest rates and lowest monthly payment available….
Buying a car is a huge responsibility, and Harvey drivers know that taking it seriously is important to ensure you get the ride vehicle at the right price. However, if you’ve never purchased a vehicle before, you may be unaware as to how it works. While it’s time consuming and important for you to pay…