Open navigation Main Menu Mortgages
Financing a home purchase Refinancing an existing loan Find the best lender Additional Information
Looking for a financial advisor? Try our three minute test and then match up the advisor you want today.
Main Menu Banking
Compare Accounts Use calculators Get help from bank reviews
Looking for a financial advisor? Do our 3-minute quiz and match to an adviser today.
Main Menu Credit cards
Compare with other categories Compare with credit requirements Compare by issuer Get advice
You’re looking for the perfect credit card? You can narrow your search using CardMatch(tm)
Main Menu Loans
Personal Loans Student Loans Auto Loans Loan calculators
Find an individual loan in 2 minutes or less. Answer a few questions to be offered loans, with no impact on your credit score.
Main Menu for Investing
The Best Brokerages as well as Rob-Advisors. Learn the basics Additional resources
Looking for a financial advisor? Do our 3-minute quiz and then match up with an advisor today.
Main Menu Home equity
Get the best rates Lender reviews Use calculators Knowledge base
Looking for a financial advisor? Try our three minute test and connect the advisor you want today.
Main Menu Real estate
Home selling or buying an investment property Locating the right agent information
Looking for a financial advisor? Take our 3 minute quiz and then match up the advisor you want today.
Main Menu Insurance
Car Insurance Homeowners insurance Other insurance Company reviews
Looking for a financial advisor? Try our three minute test and connect to an adviser today.
Main Menu Retirement
Retirement plans & accounts Get the basics of retirement calculators Additional resources
Looking for a financial advisor? Try our three minute test and then match up the advisor you want today.
The search is open and closed.
Do you prefer to finance your purchase through a bank or dealership? Advertiser Disclosure Advertiser Disclosure We are an independent, advertising-supported comparison service. Our aim is to assist you make better financial choices by providing you with interactive tools and financial calculators as well as publishing objective and original content. We also allow you to conduct your own research and analyze data for free and help you make informed financial decisions. Bankrate has agreements with issuers, including but not limited to American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Make Money The deals that are displayed on this site come from companies that compensate us. This compensation can affect the way and where products appear on this site, including, for example, the order in which they appear within the listing categories and other categories, unless prohibited by law for our mortgage, home equity and other products for home loans. But this compensation does affect the content we publish or the reviews that appear on this website. We do not contain the universe of companies or financial deals that could be available to you.
You are on this Page On This Page
4 min read. Published August 18 2022
Expert verified. How is this site expert verified?
At Bankrate We consider the quality of our content very seriously. « Expert verified » means that the Bankrate Financial Review Board thoroughly evaluated the article for accuracy and clarity. Its Review Board comprises a panel of experts in finance whose goal is to make sure that our content is objective and balanced. Their reviews ensure that we are publishing top-quality, reliable content.
Written by Bankrate Written by
The article was created using automation technology and thoroughly edited and fact-checked by an editor on our editorial team.
The edit was done by Rhys Subitch Edited by Auto loans editor
Rhys has been writing and editing for Bankrate since late 2021. They are passionate about helping readers gain confidence to take control of their finances with clear, well-researched information that breaks down otherwise complex subjects into digestible pieces.
Review by Mark Kantrowtziz. Reviewed by Nationally known student expert in financial aid
Mark Kantrowitz is an expert on student financial aid The FAFSA, scholarships, 529 plans as well as tax benefits for education and student loans.
The Bankrate promise
At Bankrate we aim to help you make better financial decisions. While we adhere to strict journalistic integrity ,
this post may contain references to products from our partners. Here’s a brief explanation of how we make money .
The promise of the Bankrate promise
Founded in 1976, Bankrate has a proven track history of helping people make informed financial decisions.
We’ve maintained our reputation for more than four decades through simplifying the process of financial decision-making
process, and giving people confidence about the actions they should take next. Bankrate follows a strict ,
so you can trust you can trust us to put your needs first. All of our content was written in the hands of and edited by
We make sure that everything we publish will ensure that our content is reliable, honest and trustworthy. We have a team of loans reporters and editors focus on the points consumers care about the most — various types of loans available as well as the best rates, the most reliable lenders, the best ways to repay debt, and many more, so you can feel confident when investing your money.
Integrity in editing
Bankrate has a strict policy and rigorous policy, so you can rest assured that we put your interests first. Our award-winning editors and journalists create honest and accurate content that will aid you in making the best financial decisions. Key Principles We respect your confidence. Our aim is to offer readers truthful and impartial information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly check the accuracy of editorial content to ensure that the information you’re reading is accurate. We have a strict separation with our advertising partners and the editorial team. The editorial team of Editorial Independence Bankrate does not receive compensation directly through our sponsors. Editorial Independence Bankrate’s editorial staff writes in the name of YOU – the reader. Our goal is to give you the best advice that will help you make smart personal financial decisions. We follow strict guidelines to ensure that our editorial content isn’t affected by advertisements. Our editorial staff receives no direct compensation from advertisers, and all of our content is verified to guarantee its accuracy. If you’re reading an article or a review, you can trust that you’re getting reliable and dependable information.
How do we earn money?
If you have questions about money. Bankrate has the answers. Our experts have been helping you manage your finances for more than four decades. We are constantly striving to give consumers the professional advice and tools needed to make it through life’s financial journey. Bankrate follows a strict policy, which means you can be confident that our information is trustworthy and accurate. Our award-winning editors, reporters and editors provide honest and trustworthy content to help you make the right financial choices. The content we create by our editorial staff is factual, objective and uninfluenced by our advertisers. We’re open about the ways we’re able to bring quality information, competitive rates and useful tools to you , by describing how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We receive compensation for the placement of sponsored products or services, or by you clicking on specific links on our site. So, this compensation can influence the manner, place and in what order products appear within listing categories, except where prohibited by law. This is the case for our mortgage or home equity, and other products for home loans. Other factors, like our own proprietary website rules and whether a product is available in the area you reside in or is within your self-selected credit score range could also affect how and where products appear on this website. While we strive to provide the most diverse selection of products, Bankrate does not include details about each financial or credit item or service.
If it is time to purchase your next car it is important to decide whether you will choose to go through your bank or through the bank itself to get car financing. Both provide you with the chance to drive away with a brand new car however, they differ in terms of terms of experience, rates available in addition to loan lengths. What should you consider when choosing between bank or dealer auto loans Be aware of the possible advantages and disadvantages of both prior to submitting an application for financing. Bank financing The primary advantage of going directly to your bank is that you’ll get lower interest rates. Dealers typically have higher interest rates, because dealers will add a markup to the interest rate when they connect you to the lender. Along with this the fact that banks and credit unions offer an array of options so you’re more likely to locate an option for financing that is suitable for you. Dealer financing If you go through the , you can benefit from a variety of benefits that will make the process of financing easier. You can use the dealership’s financing office that will cut down on the amount of time that you’d spend shopping around with other lenders. Dealerships are also known to offer manufacturer offers, such as rebates as well as other . Auto financing through a bank A bank could be a great option if you are looking to steer clear of shopping around and comparing rates. Benefits of auto financing from a bank If done properly, financing a car through the bank is an excellent idea. Banks tend to provide low interest rates and can be a good alternative if you require an additional loan. The drawbacks of auto financing at banks However, outside bank loans are more time-consuming to process, and you may have to apply in person. You also might not qualify for a loan if you have low credit scores. Consider the urgency of your vehicle loan as well as the condition of your credit before deciding to borrow from the credit union or a bank. How do you finance with a bank If financing through a bank is the right choice for you, then you must first satisfy the eligibility requirements of your bank in order to be eligible for the loan. Many banks will have the auto loan minimum and maximum amount, so check if your chosen bank can provide you with the auto loan that fits your needs. It is important that you know what car you intend to finance. Certain banks will only lend to cars purchased through dealer partners. They may have age and mileage restrictions. Find an lender which offers refinancing without fees. That way, if your financial situation changes or worsens in the course of time, you can adjust your loan without incurring any additional fees. It is also necessary to request a quote request from your bank. In the process of obtaining a quote you can choose which term is best suited to your monthly budget and get an idea of the overall cost with interest. If you decide to go ahead with the application process, the lender will likely request documentation like W2s, pay stubs from the last few months, proof of address and an official ID. Are bank auto loans the right choice for you? The option of borrowing money from a bank may be a viable alternative if you require more loan amount, a low interest rate or the repayment period is 5 years or more. Take a look at the drawbacks and advantages of financing through banks prior to signing off and be certain to research your alternatives. A dealership can finance your car The dealership could be an option for you if your credit isn’t in the best shape as well as if you’re not in an existing relationship with any banks or credit unions. Benefits of financing through a dealership The major advantage of using a dealer to finance your car is convenience. You don’t need to go through an institution and then wait for days, or weeks, for approval. Instead, you’ll just go to the dealership and take home the car of your . If you’ve got someone with you, you could have the person accompany you to make the purchase process more relaxing. Drawbacks of financing through dealerships The first drawback may initially seem like a benefit. Dealerships generally offer financing options that include a minimum of $0 down payment options. While these can make for an affordable monthly payment and the initial cost, you’ll pay more in interest overall. You are also likely to receive a greater interest rate. It is also more costly than regular auto loans — even with the same credit score. This is because dealers both add a markup to the interest rate and are also enticed to direct you to certain lenders, even if you could find an APR that is lower elsewhere. How do you finance with dealers Dealerships collaborate with big banks as well as online lenders as well as credit unions to provide car loans via their financing department. This means that you’ll be able to finance your vehicle by using a program which the dealer has with an lender, and the dealer will take care of much of the heavy lifting. If you’re granted financing through the dealership, you’ll be taken to the dealership’s financing department to conclude the transaction. This process will differ depending on the dealership, but you’ll likely have to fill out several forms and then submit evidence for income as well as assets. Once you are accepted, the finance manager or an agent who is the dealer’s automobile lender will be able to assist you with reviewing the loan details and finalize the loan. Is dealership financing right for you? A direct loan to your vehicle through the dealership is the ideal alternative if you’re looking to skip the hassle involved in shopping for financing. It’s also simpler to get approved for, so if you have poor credit, financing through the dealership is likely to be the best option. Some tips for getting an auto loan Whether you are applying for your car loan directly through the dealership or via a bank or credit union it is essential to get prequalified and research. Get prequalified If you are applying for financing through an institution like a credit union or bank, take advantage of the process. The procedure is generally available on the internet and is a fantastic opportunity to determine of how much you will be in a position to get. You’ll need your earnings as well as savings details to finish the process. If you are prequalified look for a loan with the rate you were offered. Many auto loan rates are negotiable, as can be said of fees and length of loan. Many lenders will compete for your business, and you can use this to your advantage. Don’t choose an lender that doesn’t provide favorable conditions. The next step is to consider dealerships as well as banks can be viable alternatives when it comes to financing your new car. But they each have their advantages and disadvantages Be certain to do your research to find the most favorable rates of interest and repayment terms. Find out more
This article was written with the help of automation technology, and then checked for accuracy and editing by an editor from our editorial team.
The edit was done by Rhys Subitch Edited by Auto loans editor
Rhys has been editing and writing for Bankrate since late 2021. They are committed to helping readers gain the confidence to control their finances with concise, well-researched and well-researched content that breaks down otherwise complex subjects into bite-sized pieces.
Auto loans editor
Reviewed by Mark Kantrowtiz Reviewed by Nationally recognized scholar financial aid specialist
Mark Kantrowitz is an expert on student financial aid, the FAFSA as well as scholarships, 529 plans educational tax benefits, student loans.
Nationally acknowledged expert in student financial aid
Related Articles Auto 4 min read Feb 27 2023
Auto Loans Read 6 minutes Oct 28 2022
Loans 6 min read Sep 27, 2022
Mortgages 2 min read Jun 24, 2022
Legal Cookie settings Do not sell my personal information
How we make money Bankrate.com is an independent, advertising-supported publisher and comparison service. We receive compensation for the placement of sponsored products and, services, or for you clicking certain hyperlinks on our website. So, this compensation can impact how, where and in what order items are listed and categories, unless it is prohibited by law. We also offer mortgage, home equity and other products for home loans. Other elements, like our own website rules and whether or not a product is available in the area you reside in or is within your own personal credit score could also affect the manner in which products are featured on this website. While we strive to provide the most diverse selection of products, Bankrate does not include details about every financial or credit product or service. Bankrate, LLC NMLS ID# 1427381 | BR Tech Services, Inc. NMLS ID #1743443 |
(c) 2023 Bankrate, LLC. The Red Ventures company. All Rights reserved.
If you have any inquiries relating to where and the best ways to utilize payday loans online same day deposit washington state, you could call us at the web site.