Where is the Best Place to Get a Car Loan: Bank or Dealership

Are you wondering about the best place to get auto financing for your used pickup truck? At Truck Ranch, we work to make sure that you’re getting the best possible deal when you’re car loan shopping at our used truck auto store. When you need tips about where to get a car loan near Logan, we have you covered in our handy guide.

Where to Go Car Loan Shopping?

If you’re wondering about the best place to get a car loan, your two main options when car loan shopping for auto loan rates include:

• The dealership where you’re purchasing your vehicle
• A bank or other financial institutions like a credit union

Both can offer many benefits to shoppers. 

Car Loan Shopping at a Dealership

One of the best places to get a car loan is the dealership where you purchase your vehicle. 

• Dealers can help you choose between leasing vs. buying. 
• Dealerships work with multiple lenders to get you the lowest rates possible. 
• It’s easy to apply. You only need to fill out one form for the lender’s offers. 
• Multiple lenders are competing for your business, which leads to better rates and terms.
• Some dealerships offer options for those who do not have good credit.
• The dealership may offer financing incentives.
• You can negotiate your down payment when financing with the dealership. 

Obtaining Car Loans from Your Bank

When choosing where to obtain your car loan, you may consider going through your local bank in the American Fork area. Speak with our dealership before applying at your local bank to see your loan offerings. Those with less-than-perfect credit may have trouble getting a loan with a financial institution like a bank. Some benefits to choosing your local bank include:

• 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

In-House Financing vs. Bank & Credit Union Financing

When you’re car loan shopping, it’s essential to know the difference between financing at our Logan dealership to securing your auto loan from another financial institution like a bank or credit union. Below is a look at what you should know:

• Bank Financing: When you apply for an auto loan at a dealership, the dealer will usually send that application out to different lenders to see where they can get you the best rate possible. 
• In House Financing: In-house financing, sometimes called “buy-here-pay-here” financing is offered by the dealership, so you don’t need approvals from other lenders. It may mean higher interest rates but is beneficial for car buyers with a poor credit score or little to no credit. 
• Credit Union Financing: If you belong to a credit union, you can apply there to save money. 

Learn About Your Financing Options at Truck Ranch!

Contact one of our used truck stores if you have any questions. We want to make sure you know everything about car loan shopping before applying for an auto loan.