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 Apr 13, 2019
 

Sales performance of true miracles could only be credited, ultimately, to an higher power. For sure. My vehicle ended up having, I believe an unforeseeable, brake problem but Cornerstone Service took care of that, and then some. I highly recommend Cornerstone Plymouth for anyone’s automotive needs. They sell everything from luxury imports to the most affordable cars out there and they service them all. Good people too.

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Google Mar 20, 2019
 

Gerald is absolutely amazing! Not only did he spend quality time to make sure we were ok with the vehicle, but also made sure we had the best deal. He gave us secrets of the trade. Amazing Christian Company. Loves to truly take care of you!

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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!

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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!

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Google Mar 5, 2019
 

Great staff. Happy with my new vehicle

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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.

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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!

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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 !

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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!

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