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

Hand Punching Numbers on Calculator

When shopping for a new vehicle in the Bloomington area you’re going to be looking for the best possible deal available. Eventually, you’re going to be faced with the question, “Where is the best place to get a car loan?” The experts at Sam Leman Automotive Group can walk you through your options, and explain what the difference is between financing with a bank vs. financing through a dealership.

Car Loan Shopping

There are two basic options when shopping for a car loan shopping loan:

  • The dealership where you’re purchasing your vehicle
  • Your bank or credit union

Both of these options offer different benefits to car shoppers.

Car Loans From a Dealership

There are a number of advantages to securing a car loan from a dealership, including:

  • Dealers can help you determine if leasing vs. buying is right for you.
  • Dealerships work with a variety of lenders to get you the best rates possible.
  • To apply for financing, you only need to fill out one form to get multiple options.
  • With multiple lenders are competing for your business, you can secure a better rate.
  • In-house financing dealerships can offer better options for those who have issues with credit.
  • In some cases, it’s convenient to trade your old vehicle in at the same place where you secure your loan. This is true even if you’re trading in a financed car.
  • The dealership often provides financing specials and incentives.
  • You may be able to negotiate your down payment when financing with the dealership.
Man in a Used Car Giving Thumbs Up

Car Loans From Your Bank

Many Morton and Peoria area car shoppers will consider contacting their local bank for car financing. However, if you have less than stellar credit, you’ll find that it can be more difficult to get a loan from a bank. Nevertheless, there are some benefits to bank financing:

  • You have a pre-existing relationship with your bank
  • There are often set interest rates
  • You may be able to set a flexible payment schedule

Discuss Your Financing Options at Sam Leman Automotive Group

Have questions about your financing options? Feel free to contact the finance center at the Sam Leman Automotive Group dealership near you. Our finance specialists will be happy to discuss your options with you and guide you through the financing process, teaching you about GAP insurance and other options as we go. Meanwhile, use our convenient online tools to calculate your monthly payment and estimate the trade-in value of your current vehicle, then come see us today!

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