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 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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Cars Sep 14, 2019

I was well pleased with the service I received from sales associate Gerald Foster. He made vehicle purchase easy and fun. Happy with the vehicle and couldn't wait to get it on the freeway. ❤!!!

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Google Sep 2, 2019

Al Pryor is very knowledgeable about the different types of vehicles, excellent customer service. I would recommend Al Pryor as your next sales representative.

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Google Aug 28, 2019

I had a great experience with Cornerstone and the salesperson who worked with me, Aaron. Aaron was very helpful and knowledgeable about the cars we looked at and made the experience of getting a new vehicle so easy! I am so happy with my purchase and my experience. Aaron and the rest of the staff is so friendly and helpful! I totally recommend Cornerstone and Aaron if you are looking for a vehicle! Thank you!

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DealerRater Aug 10, 2019

Caleb and Al handled everything very smooth and made the purchase easy. Will be visiting them next time we are shopping for a new vehicle.

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Google Aug 9, 2019

I went looking for a SUV yesterday and I was lucky enough to have Gerald assist me.He was kind professional and thorough . I must say he and the financial team went above and beyond to make sure I walked out of there with the truck I’ve always wanted! Thank you Gerald and Amanda(?) you guys are the best.

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Google Jul 31, 2019

Joel was my sales man. And I must say he is a Miracle worker. Couldn’t have had any better experience anywhere with Purchasing a Vehicle. They are all amazing and outstanding customer service.! They actually care for you and whatever it may be your looking for. GO HERE 100 PERCENT WHEN GETTING A VEHICLE!!!

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Google Jul 31, 2019

From start to finish, Caleb and Ryan both were very informative and right there to answer any questions I had. They both worked hard to get my loan to go through quickly.I did not think I would be driving out of the dealership with my new (used) vehicle that day but I did.I do recommend Cornerstone Plymouth and other Cornerstone locations especially if they have personnel like Caleb and Ryan.Thanks again both of you for making this an enjoyable experience instead of a frustrating one that I may have found going somewhere else.Thank you,Thomas Manning

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