Which Car Loan is Best – Dealership or Bank?
Whether you’re searching for a new or used car in the Countryside area, it’s likely that you’ll take advantage of car financing. However, it’s important to do your research before you sign papers at the dealership so you can ensure that you get the best interest rates and lowest monthly payment available. Find out whether financing through the dealership or through a bank or credit union is best for you, and then rely on the The Autobarn Volkswagen of Countryside finance department to walk you through the process!
How to Find the Lowest Rate
There’s no surefire way to tell whether your dealer will offer a lower interest rate than your bank; in many cases, dealer financing is actually the same as bank financing. The dealer simply goes to the bank and does the legwork for you. However, it can be beneficial to go to your bank before choosing your vehicle so you can find out their rate first. Then, you can compare that to your dealer’s and see if your dealer can match the rate if the bank’s is lower.
Dealer Financing
- Pros: Automakers will occasionally have promotions where they offer very low interest rates on new cars, which a typical bank wouldn’t do. Dealers will also “shop around” so to speak, and will find the best bank rate in the area.
- Cons: Dealer financing is a common option because it offers the simplest route to buyers – they can choose and finance without leaving the dealership. However, it’s important to ensure that your dealership isn’t marking up the bank’s rates in order to make money.
Bank Financing
- Pros: The main advantage of car financing through a bank is that they won’t mark up interest rates as some dealers might. Because of this there’s no middleman, so rates could potentially be better.
- Cons: You can negotiate interest rates with your dealer, but banks will typically offer just one rate. They also won’t shop your credit around to lenders like dealers do.
Rely on The Autobarn Volkswagen of Countryside for All Things Finance
Whatever financing route you choose, you can count on our experienced finance department to help you through every step of the way. Contact us for more information, and make your way to our Countryside dealership to browse our new vehicle inventory in person!
Recent News from The Autobarn Volkswagen of Countryside
2022 Volkswagen Jetta Interior
The polished look and relaxed seating in the new Volkswagen Jetta interior provide Chicago drivers with top-tier luxury and one of the most enjoyable drivers available. Regardless of whether you’re talking technology, entertainment, cosmetics, Volkswagen Jetta dimensions, or anything else about the interior of this classic, you’re getting top-of-the-line all the way around. If you’ve…
2023 Volkswagen Atlas MPG
With rising gas prices around Countryside, many drivers are looking to find a vehicle that gets the most out of every drop of fuel. To get the space you need in an SUV, most Chicago drivers assume you have to give up on efficiency. The new Volkswagen Atlas, however, allows its owners to experience…
2022 Volkswagen Atlas Towing Capacity
Thanks to its powerful engine and strong towing capabilities, the Volkswagen Atlas SUVis an excellent vehicle to haul families and commuters around Countryside. The 2022 Volkswagen Atlas towing capacity can reach up to 5,000 pounds when properly equipped, but with two engine options to choose from, this SUV gives Chicago drivers the option when it…
0 comment(s) so far on Which Car Loan is Best – Dealership or Bank?