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

  • 2021 Silverado 1500 Towing Capacity

  • How Much Can a 2021 Ford Explorer Tow?

      The Ford Explorer is a highly capable vehicle on Minneapolis roads, so just how much can a Ford Explorer tow? The 2021 Ford Explorer towing capacity reaches an impressive 5,600 pounds when properly equipped. Plus, this SUV is built with smart technology that maximizes power and control over the Maple Grove roads – along with…

  • 2021 Ford F-150 Towing Capacity

      If you refuse to compromise when it comes to power, then you need a truck that won’t give in, either. So, what is the towing capacity of a Ford F-150 in 2021? Offering a class-leading 14,100 pounds of towing muscle, the 2021 Ford F-150 raises the stakes over last year’s 13,200-pound max. Also new…

What Cornerstone Plymouth Customers Think

DealerRater logo
DealerRater Apr 20, 2021
 

Kenny worked real fast on getting my approval from the bank. By the time I came bank from my test drive everything was ready to go. That's what you call a good sale person.

Read more at DealerRater

DealerRater logo
DealerRater Dec 14, 2020
 

I came into the car lot late a little before they closed and the car salesman Gerald Foster was amazing he stayed late just to help me get in the car that I really wanted!!! I was so appreciative of him. I know that I'll definitely send all of my friends there!!!!

Read more at DealerRater

DealerRater logo
DealerRater Oct 22, 2020
 

October 21, 2020 Gerald Foster, My wife had been working with him and she explained exactly what we wanted and price. Gerald waited after hours to finish the entire process, we were late with no excuse, arriving just before it was quitting time for him, finding out later that he had a pretty long drive home on this snowy October evening. He greeted us as if he had known us for years. Gerald is insightful, knowledgeable, confident, engaging and just a pleasant, patience and courteous person. He knew we would be leaving HAPPY AND SATISFIED with our experience at Cornerstone Plymouth, Fabulous ...

Read more at DealerRater

DealerRater logo
DealerRater Oct 3, 2020
 

The experience at cornerstone was beyond awesome Brenden, help me out with the perfect car and perfect plan. I would highly Recommend cornerstone Agent Brenden, he went the extra mile even offered buying a lyft for me to get there. I had a ride though its just what step he took to make this happen Thank you Brenden

Read more at DealerRater

DealerRater logo
DealerRater Apr 10, 2020
 

my saleman was kenny. i feel so nervous buying a car . but Kenny made me feel relax. it was like I've known him for year. we talked and he was very compassinate about my bad knee. and let me sit down as much as i needed too.

Read more at DealerRater

DealerRater logo
DealerRater Apr 5, 2020
 

This was the best experience I had in a long time. Gerald Foster was my sales person. I ask and i received everything thing i requested . Thanks Gerald Foster you're the best.

Read more at DealerRater

DealerRater logo
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.

Read more at DealerRater

DealerRater logo
DealerRater Jul 21, 2019
 

Today, being 07/20/2019 I visited Cornerstone Auto Plymouth, to buy a car (Nissan Morano) for my wife's surprise birthday gift. Mr. Al, was my sales representative and was very good at his job too, infact, he has a good customer relationship, friendly, and very easy to work with. I would have bought a car at Cornerstone Auto without his good conviction and politeness.

Read more at DealerRater

DealerRater logo
DealerRater Jul 20, 2019
 

Went to trade in my compact car for a new mommy car which i wanted to be a suv or truck, Al helped me find the right car, my old car had a remote starter and i wanted a car with the same and i got it, even my brother went and got a new car a few weeks after me, great place to go to they work with you and help find there right car for you

Read more at DealerRater

DealerRater logo
DealerRater Jun 6, 2019
 

Gerald Foster is a professional who exemplifies the characteristics of a honest, approachable and caring person whose main purpose is to help customers not only reach but exceed their dreams. Years ago an agent assisted my daughter with the acquisition of a vehicle under circumstances that weren't ideal but they worked with her. It was based on this history that I brought my son to acquire his first vehicle. During the transaction I was asked if I had an interest in securing another car for myself and my reply was, "The next vehicle I acquire will be my ...

Read more at DealerRater

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

DealerRater logo
DealerRater Feb 9, 2019
 

I walked in not expecting anything. I was not pressured. I told him what I had and Gerald took care of the rest. I will tell you I wasn't nice even walked out. Gerald assured me that his interest was only to help me in my pursuit towards purchasing the Vehicle of my choosing regardless of the price. Professional, Efficient, tycoon. Gerald Foster I cant say thank you enough. I have room and space and bought my first vehicle. Gerald you have a customer for life. Anybody that has any money and looking for a decent vehicle. Go to ...

Read more at DealerRater

DealerRater logo
DealerRater Feb 5, 2019
 

First of all let me start by saying, I am a return customer to Cornerstone and they never cease to amaze me. They have the best inventory in Minnesota hands down and they always treat you with respect and dignity regardless of your credit history. My sales person John Gordon is an exceptional human being and has set the Gold Standard for how a car buyer should be treated. Thank you John and thank you Cornerstone Plymouth!

Read more at DealerRater

DealerRater logo
DealerRater Jan 31, 2019
 

My experiance at cornerstone was very good. All the employees were friendly and helpful. My sales associate Al Pryor, was great to work with. Very personal and made the buy easy. You will get more than a sales pitch from Al. Best deal in town for what I was looking for. I would buy again from Cornerstone.

Read more at DealerRater

DealerRater logo
DealerRater Jun 5, 2018
 

John Gordon gave me excellent service. He never pushed me to buy, Instead he asked me what did I want in a car. He made sure he Listen to my needs and he delivered. He made my car shopping experience very comfortable. Cornerstone you the Best!

Read more at DealerRater

DealerRater logo
DealerRater Oct 29, 2017
 

I have given a 5 star review because I received 5 star service. When I was about to give up and settle I was told I have what I wanted!!! Just Amazing work from this location. Antoinette Brasson

Read more at DealerRater

DealerRater logo
DealerRater Jul 18, 2017
 

Steve Gunderson made my recent purchase very pleasant and easy. Amanda in financing also very pleasant and extremely easy to deal with. An overall amazingly positive car buying experience!

Read more at DealerRater

DealerRater logo
DealerRater Apr 7, 2017
 

Great people. Very upbeat. Love their jobs. Straight to the point. Fair pricing. They work to make things affordable and as easy on you in every way possible.

Read more at DealerRater

DealerRater logo
DealerRater Oct 12, 2016
 

My sales associate Steve Gunderson was great to work with. I'd recommend Cornerstone to all my friends and family. Great staff and friendly environment.

Read more at DealerRater

DealerRater logo
DealerRater May 31, 2016
 

I had several friends who purchased vehicles from Cornerstone Auto in Plymouth. I went online to see what was available. Al Pryor was the salesman that had been recommended to me by my friends. I called to see if he was working. When I arrived, he was already working with one customer and had another waiting, This tells you something about him that he had customers waiting to work with him. Al referred me to Riley Uhl. Riley discussed my wants and needs. I had pre-selected the vehicle I was interested in, a beautiful used Mercedes. I took it for ...

Read more at DealerRater

DealerRater logo
DealerRater Jan 7, 2016
 

Customer for life! I've always knew the people at Cornerstone were fine trustworthy Christian people but my recent experience with them only cemented that view of them even more. Over Christmas of 2015, our 2008 GMC Acadia had a transmission issue while we were traveling throughout the Midwest. We limped our vehicle to a GM dealer only because we thought it would be covered by the GM warranty - Boy were we wrong! After three days at this competitor, they told us the problem was not warranty related and that the bill would be $2,500! needless to say I was beside myself ...

Read more at DealerRater

DealerRater logo
DealerRater Jul 23, 2015
 

I had the most amazing experience when my grand daughter and I came to cornerstone, and met Al Pryor. We both picked out a car and Al took all the paper work to the loan department, and in no time at all it was all finalized to my amazement. I was so shocked, I almost lost my breath. He was so professional and the loan specalist I thought was angels as far as the paper work process went it was so quick almost like a speed of light. I was so happy with my experience I was able to get ...

Read more at DealerRater

DealerRater logo
DealerRater Mar 5, 2015
 

I didn't end up buying a car from this dealership because when I got there the car I originally wanted was sold the night before, but there were more of the same cars but way out of my price range so it didn't happen, my buying situation was a little tough but they got me approved unlike other dealerships just not the car for me, I will say Dan kept in contact with me with other cars that I might of been interested in that kept coming in from local trades, if your in a tricky situation like ...

Read more at DealerRater

DealerRater logo
DealerRater Sep 20, 2014
 

Words cannot express the thanks I have for this place!! From my initial point of contact with Tom and Nik to closing with Annette their customer service and no pressure sales was bar none!! If you are in the market for a car this is the spot!! Thank you all for a wonderful buying experience!!!

Read more at DealerRater

DealerRater logo
DealerRater Sep 17, 2014
 

Tom Hunter was our sale guy and he was very helpful. He was very friendly and go above and beyond yo help us out. He made our purchase very comfortable. We would recommend him to our friends and family.

Read more at DealerRater

DealerRater logo
DealerRater Sep 17, 2014
 

Tom, Has been very professional and courteous. Making my car purchase very comfortable. If I had to buy another car from cornerstone I would buy again. Thanks, Phong

Read more at DealerRater

DealerRater logo
DealerRater Sep 16, 2014
 

Tom Hunter really helped me out. I came in just to look and walked out with a car. He made it so easy for me . My financing was also taken care of.

Read more at DealerRater

DealerRater logo
DealerRater Sep 16, 2014
 

Tom had taken such great care of me when I bought my car that I'm referring everyone I encounter for car buying to him.

Read more at DealerRater

DealerRater logo
DealerRater Sep 16, 2014
 

I purchased a 2014 Hyundai Sonata at Cornerstone last month and was surprised at how quickly and smoothly my purchase was taken care of. From the minute I walked in the staff was attentive and allowed me to ask questions and feel comfortable. I have struggled with credit issues in the past and Cornerstone made it easy by working hard and finding me the best approval available that fit within my budget. Tom was patient and helped me find the perfect car for my growing family! I would recommend this dealership to anyone in search of a vehicle.

Read more at DealerRater

DealerRater logo
DealerRater Sep 16, 2014
 

It was great working with Tom Hunter. Quick process. Maybe a little too quick. 🙂 No time to rethink. But overall that was best. Thank you.

Read more at DealerRater

DealerRater logo
DealerRater Aug 20, 2014
 

Me & my fiance went into Cornerstone to buy a minivan, right away we loved how the car sales guy did not give us the run around, waste our time, over talk or seem like he was in it to make a commission, he def worked with us & for us. He was very cool & to the point. I loved it. Nik Zukanoff was awesome!!

Read more at DealerRater

Posted in Finance