Is it better to get an auto loan from a bank or dealership?
It is time to purchase a new vehicle which can be both an exciting and stressful time. You are looking at financing your new vehicle, but you are questioning, “is it better to get an auto loan from a bank or dealership?” You have come to the right place. While we will not specifically answer this question for you, we will give you things to think about with both options so that you can make an informed decision.
Should I finance through a bank?
If you decide to finance your new vehicle through a bank, you will have to go directly to the bank. As long as everything is in order, you will get approved and you will receive a letter of commitment saying how much you have been approved for. When it comes to the interest rate, the bank will not try to mark it up to get more money from you. Finally, sometimes banks have limits when it comes to purchasing a used vehicle. This can be the age of the vehicle or the number of miles it has. This would be a great question to ask your bank before getting too far into the process.
Should I finance at a dealership?
Financing at a dealership is quite similar to financing at a bank. The biggest difference is that someone from the finance department at the dealership will do the work for you. Once you pick out your vehicle, you will fill out some paperwork at the dealership, and they will send your information to multiple lenders. It is important to note that sometimes dealerships will work with lenders to get a higher interest rate so that the dealership can get paid for doing the work.
Myths about buy here pay here car dealerships that are not true
What about a buy here pay here dealership?
There is one final option if you are someone who has bad credit or no credit. It is a buy here pay here dealership. The dealership will act as your lender and you will make your payments to a dealership rather than to a bank or other third party. At Carizma Motors, we are a buy here pay here dealership, and we would be more than happy to answer all of your questions about financing.
