Where to Get a Car Loan: Bank vs. Dealership?

Woman handing over car keys

 
Buying a new or even used car can be scary and stressful, especially when it comes to the car financing process. Everyone wants the best deal possible, and no one wants to feel swindled. Luckily, the Hyundai of Las Vegas finance pros simplify automotive leases and loans, cutting out the complexity. Still, while car loan shopping, you might’ve heard some people say that when it comes to the matter of where to get a car loan, the best place to get auto financing is with a bank. The truth, however, is that the best place for you to get financing may be a bank or a dealership depending on your situation. Let’s dive into why that is below. Have questions right now? Contact us for help.

 

A Note on Car Loan Shopping

Wondering where to get a car loan around Henderson or North Las Vegas? Car loan shopping is most often done at:

  1. The dealership where you’re purchasing your vehicle
  2. A bank or other lending institution (i.e. a credit union)

While banks sometimes offer lower interest rates, which is why many people tout that they’re better than dealer finance centers, that’s not always the case. Sometimes, dealership finance centers like ours actually can provide you with better rates.

Why? Dealerships establish good working relationships with lenders and may even have access to more obscure lending sources that offer better rates than you might find by doing your own research or going to your preferred banking institution. And that’s just the beginning. Call 725-236-4400 to learn more about what we can do for you with regard to car loan shopping and financing.

Car Loans From a Dealership

One of the best places to get auto financing is a dealership. In addition to the above, other benefits include:

  • Dealerships work with a variety of lenders to get you the best rates possible.
  • Dealers can help you decide if leasing or buying is right for you.
  • Applying online is easy. You only need to fill out one form to get multiple loan offers.
  • Multiple lenders are competing for your business, which can lead to a better rate.
  • Some dealerships offer options for those who have issues with credit.
  • The dealership may offer financing incentives.
  • You may be able to negotiate your down payment more when financing with the dealership.

Car Loans From Your Bank

When considering where to get a car loan — at a bank vs. dealership — these are the reasons you might prefer a car loan from your bank:

  • You have a pre-existing relationship with your bank.
  • There are often set interest rates at a bank. Sometimes they’re low, but not always.
  • You may be able to set a flexible payment schedule at your bank.

In House Financing vs. Bank & Credit Union Financing

In house dealership financing is a big positive for choosing dealership financing vs. bank financing, especially if you have little established credit or bad credit. Why is that? In-house financing is provided by the dealership, rather than arranged by the dealership finance center and provided by a third-party lender. That means, the dealership has more control over who it lends out to. Here is an overview of in-house financing vs. bank and credit union financing:

  • 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 get “dealer financing” most times the dealer is actually sending out your credit 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.
  • Credit Union Financing: If you belong to a credit union, you can apply for an auto loan there, and you may save money.

Discuss Your Financing Options at Hyundai of Las Vegas

Ready to learn more about where to get a car loan near Paradise? Call 725-236-4400 now for additional information and assistance. At Hyundai of Las Vegas, we strive to be not only the best place to get auto financing in Las Vegas, but also your preferred source for al l things Hyundai related, including service & maintenance. We can even offer you service & protection packages along with your financing that most banks can’t.

 

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