Best Place to Get a Car Loan: Bank or Dealership?

Curious about where to get a car loan? Car loan shopping can be a stressful process, but Ole Ben Franklin Motors is here to keep things easy for you. We’re here to go over the best places to get auto financing and compare the ins and outs of getting a loan from a dealership or a bank. Let’s dive into the details so you can finance your next vehicle knowing you made the right decision!

How to Start the Process: Car Loan Shopping

If you don’t know where to get a car loan, you may not know how to even start looking for lender options. Here are the two main options that most Farragutdrivers pursue:

• You can keep things simple and get a car loan from the car dealership where you’re shopping. 
• If you’d like, you can opt to do the legwork yourself and look for a bank or credit union who is willing to give you an auto loan.

Now that we know our options, let’s determine the best place to get a car loan for your specific financial needs.

Where to Get a Car Loan: Your Car Dealership

If you want to keep things streamlined, a dealership is likely the best place to get auto financing. We do all the legwork and look for lenders for you. Here are some other benefits:

• Because we work with multiple lenders, we know who has the best rates available.
• It’s possible to get better loan rates when multiple lenders want your business.
• You can easily apply for financing online and we’ll do the rest.
• Dealerships are often happy to work with those who have bad credit.
• Dealerships also offer new vehicle specials.

Where to Get a Car Loan: Your Bank

If you are car loan shopping, you may be wondering if a local Sevierville bank is the best place to get a car loan. It’s typically a good idea to talk finance with your dealership before applying for a loan at your bank. Because dealers work with lenders, it’s possible that they already work with your bank.

If you do decide to opt for financing with your bank, it’s important to note that it’s usually more difficult to get a bank loan when you have bad credit. Here are some of the benefits of this option:

• Banks often have set interest rates
• Some banks allow for flexible payment schedules
• You may already have a pre-existing relationship with your bank

In House Financing or Bank & Credit Union Financing?

Before you begin to shop for an auto loan, it’s good to know the difference between different lending options. Here’s the breakdown:

• Financing at Your Bank: When you finance with a car dealership, they will usually send your application to their trusted lenders to see which one offers the best rate. So the dealership itself isn’t actually fronting the loan. Dealerships do have standing relationships with lenders, though, so they can ensure they get you the best rate.
• In House Financing at a Dealership: This type of financing (sometimes called “buy-here-pay-here”) is provided by the dealership itself for new and used cars. This means you won’t need individual approval from a lender. Keep in mind that this type of financing often has higher interest rates, so you may want to avoid it unless you have little to no credit history.
• Credit Union Financing: If you already belong to a credit union, you can also apply for an auto loan there and potentially save some money.

Finance with Ole Ben Franklin Motors Today!

Ready to get behind the wheel of a new vehicle? Visit Ole Ben Franklin Motors near Seymour today! Our finance professionals would be happy to walk you through the car-buying process and share all their finance tips and tricks. We can even go over insurance information such as whether or not you need full coverage on a used financed car. Learn more today!