Which Car Loan is Best – Dealership or Bank?

February 20th, 2018 by

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Whether you’re searching for a used car in the Plymouth 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, then rely on the Cornerstone Plymouth 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 Cornerstone Plymouth 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 Plymouth dealership to browse our new vehicle inventory in person!

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What Cornerstone Plymouth Customers Think

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Google Dec 2, 2019
 

Had a great experience buying a car at this Cornerstone. Put in an inquiry about a car in the morning and ended up bringing it home that night!Aaron Dreis, the one who responded to my inquiry, helped make the process of buying very quick and easy to understand. I highly recommend checking this dealership out.

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Yelp Nov 24, 2019
 

We really enjoyed our car buying experience. They really worked with us to get the car we wanted at the price we could afford. Aaron was a great salesman who did not pressure us into things we didn't want. We would definitely come back here.

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Yelp Nov 17, 2019
 

Annette and Riley were very helpful in finding me a reliable new used vehicle!  They also fixed a problem I found the next day free of charge. Definitely would buy from them again!

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Google Nov 13, 2019
 

I highly recommend Cornerstone, Plymouth if your looking to purchase a car. My sales rep Gerald Foster and Ryan were awesome to work with. I still can't believe I'm driving the car of my dreams.. The whole process went very fast and Gerald took the time to find the SUV I was looking for. When I saw the sign outside that said "God is able" I knew I was in the right place and drove right in the lot. Love this place and would highly recommend it to anyone looking to buy a new car. Ask for Gerald Foster, he's ...

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Google Nov 11, 2019
 

Today I went to Cornerstone Plymouth for a vehicle I worked with Al, Annette and I apologized I don't remember the gentleman who process my application, but I was treated with kindness and respect. Al answered all my questions regarding the vehicle I choose. The gentleman processing my app worked hard at getting me approved with the right lender. Annette explain all the documents to me before having me sign, she took time answering any questions I had on payment options weekly, Bi-weekly or monthly, she was very courteous and patient. Any vehicle I purchase will be from Cornerstone. THANK ...

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Google Nov 11, 2019
 

Great prices! More importantly, great staff and experience! There was no pressure, I was comfortable driving and picking what I wanted and the staff is friendly and very educated! I love the payment calculator! My first new car and I have no regrets. Extended shot-out to Caleb G my sales agent. Cornerstone I Highly Recommend! Thanks Cornerstone

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Google Nov 8, 2019
 

I had a very refreshing experience buying a car from Cornerstone. I worked with Riley, Ryan, and Annette. Very down to earth folks...kind, caring, and honest. No games played here. I highly recommend to anyone. Will be a return customer.

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Google Nov 7, 2019
 

Caleb was great, everyone made us feel like family!

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Google Oct 2, 2019
 

I had lost all hope of buying a new car. I had emailed Annettte and she got back to me right away. It was even her day off. She said that she thought that they could help me. I was then contacted by Riley. He worked with me and said that he was going to help me. I still did not believe him. He was honest and patient with me and made me feel comfortable. I did not feel pressured at all. Riley stayed after they closed and waited for me to come back with my trade in. I drove ...

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Cars Sep 16, 2019
 

This was by far one of the BEST used car dealerships we have ever been to! We were so sure we weren't going to get approved but they went above and beyond to work with us and we drove off the lot with vehicle that we couldnt be more happy to have! Thank you John for the excellent customer service!

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