Which Car Loan is Best – Dealership or Bank?

February 20th, 2018 by

Auto Financing Calculator Money

Contact UsApply For Financing

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!

Recent News From Cornerstone Plymouth

  • What are the Best Used Sedans?

      If you’re ready to upgrade your Minnetonka area drive, but don’t want to destroy your budget on an overpriced new car, then buying a used car from Cornerstone Plymouth could be the answer you’ve been searching for. We offer access to the best used sedans on the road today, many with shockingly low miles,…

  • How to Replace a Car Battery

    Imagine it’s January, the coldest day of the year, and you climb into your freezing car and turn the key, expecting the glorious sound of combustion. Instead, you hear clicking, maybe a little catch, and then nothing. It’s late, you’re tired, and now you’re trapped in a Maple Grove parking lot with a dead battery….

  • How to Change Your Windshield Wipers

      Every car has them and, if you plan to survive the Minnetonka winter, they need to work well. We’ll teach you how to tell when your wiper blades are ready for a change, how to do the job yourself, and what it will cost if you decide you want someone else to handle the…

What Cornerstone Plymouth Customers Think

DealerRater logo
DealerRater Mar 14, 2019
 

Fast service, great customer service and he helped me get my 1st new car! Steve was awesome & I definitely reccomend him to everyone! Thanks Steve!

Read more at DealerRater

Google logo
Google Mar 14, 2019
 

Thank you to all the staff at Cornerstone for helping with the purchase of the 2011 Ford F-150! Riley took care of us and answered all questions and was very helpful! This Purchase took about 2 weeks to come together because of my work schedule and from day 1 Riley was always there even after hours. Can tell he takes his job serious and has Outstanding Customer Service! Need a Car go see Riley! Thank you guys again and look forward to doing business again!

Read more at Google

Google logo
Google Mar 5, 2019
 

Great staff. Happy with my new vehicle

Read more at Google

Google logo
Google Mar 4, 2019
 

Aaron was great! Even though it was super busy and took a while he always make sure I was ok and apologized for the wait. I didn't feel pressured to buy a car which was good. He also laid out my options so I could get the deal. Would highly recommend.Kudos to Aaron.

Read more at Google

Google logo
Google Feb 28, 2019
 

Gerald was amazing and so wonderful to work with. These people will truly try their best to get you a vehicle. I highly recommended Gerald and the people at Cornerstone!

Read more at Google

Google logo
Google Feb 27, 2019
 

Great customer service I was not thinking it was gonna happen but Al P. got me approved in a car that I love ! I was even thinking I had to make a extra trip but nope ! I will recommend everyone to him !

Read more at Google

Google logo
Google Feb 24, 2019
 

Thanks to Kayla Strumstad for her prompt, professional service and for making recomendations on future work that needs to be done on my car! I will definitely be back! Also thanks to Josh for making sure I had the correct type of oil in my car! I will be recommending Cornerstone to my friends and family!

Read more at Google

Google logo
Google Feb 14, 2019
 

Annette and Riley were so good to me cant ask for amazing people in my life I thank go for them always helping me for the last couple of years now that I have a great credit score and a great car 2017 dodge i am so blessed for their help and i want to say thanks again for all you all have done for me Riley and Annette God Bless!

Read more at Google

Posted in Finance