Financing with a Bank or Dealership: What's the Difference?

What’s the best place to get auto financing? For most drivers in the Lexington and Shelby area, a bank or a dealership will be your choice. Both have their pros and cons, but we’re here to lay out the key differences. Let’s find out which is the right option for your wants and needs. 

Where to Get a Car Loan: Banks and Credit Unions

When doing your car loan shopping, you might consider a bank or a credit union. If you already have a bank that you do business with, this can be a convenient option. Here are some considerations:

• If you already have mortgage or other financing plan with a local bank, it can be easy to get your auto financing done in the same place. 
• Banks usually have set interest rates, so you don’t need to worry about negotiations.
• Banks also can offer more flexible payment schedules to pre-existing customers.

If you have great credit and you love your current banking institution, a bank might be the best place to get a car loan for you. But if your credit is less than perfect, it might be difficult to get approved.

Where to Get a Car Loan: Local Car Dealerships

Most Ashland drivers find that a dealership is the best place to get auto financing for a number of reasons. Dealerships are much more flexible and able to work with a wider variety of customers. That means that securing affordable financing is just as accessible for someone with perfect credit as no credit at all. Here are some reasons why you should consider a dealership for your next loan:

• While banks only work with one lender, dealerships work with multiple lenders. This allows them to pull the best rates for you.
• Dealerships put everything you need in one place. You can apply for financing while looking for your next car, and you can complete the trade-in process on site too.
• Dealerships are open to negotiations, and many offer incentives and offers to sweeten the deal as well.

If you have poor or no credit, you can also consider “in-house financing” dealerships that provide the loan themselves. While interest rates can be higher, it can be a good option for those who have problems getting approved elsewhere.

Explore Your Financing Options at Spitzer Kia Mansfield

If you’re currently car loan shopping, we welcome you to visit Spitzer Kia Mansfield for expert financial assistance. Our team can help you find a fantastic loan or lease on your dream car. There’s a good reason that so many Mansfield customers call us the best place to get a car loan, so contact us today to find out how we can help you.