Which Car Loan is Best – Dealership or Bank?

April 21st, 2018 by

Whether you’re searching for a new or used car in the Chittenango 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 Sun Chevrolet finance department to walk you through the process of buying a car!

Getting Finance

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 new Chevrolet or used 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.
2018 Chevrolet Equinox Moon Roof
2018 Chevrolet Equinox Driving

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 Sun Chevrolet 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, apply for financing online, or make your way to our Chittenango dealership to browse our new vehicle inventory in person!

2018 Chevrolet Traverse By Scenic Overlook
2018 Chevy Silverado 1500 Exterior

More from Sun Chevrolet

  • Enjoy Chittenango History at the All Things Oz Museum

    Contact Us Whether are visiting from Utica, planning a weekend from out of state, or a local looking for new Chittenango activities, the All Things Oz Museum in Chittenango, NY should be at the top or your list. Yes, Chittenango has its very own Wizard of Oz museum! Learn more about this wonderful attraction below…

  • 5 Tips to Becoming a More Fuel-Efficient Driver

    Contact Us If you frequently fill up your Chevrolet in Syracuse — or anywhere, really — you probably know that gas is expensive. But you don’t have to feel like you’re emptying your wallet every time you fill up your car. Reduce the cost of daily driving and become more eco-friendly with these five easy…

  • What Do I Do If My Air Conditioning Isn’t Cold?

    Schedule Service If your air conditioning is blowing hot air instead of the chilly breeze you deserve, find out what you or your service center can do about it in Syracuse or Fayetteville. Diagnosis & Action Locate the A/C condenser in front of your radiator and clean away any dirt, leaves, and dust that may have…

Posted in News