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 Jan 8, 2020
 

I came back from vacation and upon arriving had found out that I needed to get a new vehicle. Being that I was not mentally or financially ready to get a new vehicle I decided to go with Cornerstone because I had previously bought from them the last two cars I've owned. I asked to get in contact with anyone from sales. I am so thankful that I was transferred to Gerald Foster. From beginning to end we shared laughs, stories and he was very personable. I did not come in with the best attitude due to having this expense ...

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Google Jan 2, 2020
 

Was able to get a great deal on the car I want, and an excellent trade-in value on my old car. Friendly and knowledgeable help from Caleb, Nate, Erik, and finance department.

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Google Dec 23, 2019
 

Omg!!!! Caleb was great. The approval team was amazing! He helped me get approved and was fast!! I was very surprised with the outcome! I have been with cornerstone 3 times now and Caleb really looked out for me!!! I am so happy with my new vehicle!! If I could give 10 stars I would! Thank you so much

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Google Dec 23, 2019
 

Gerald was a nice sales rep who assisted me in getting the Kia Soul. He made sure that I wasn’t leaving out that lot with out the car I exactly wanted. Which was the all black 2018 Kia Soul. I wanna thank you so much for this please thank experience.

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Google Dec 10, 2019
 
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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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