Which Car Loan is Best – Dealership or Bank?

November 29th, 2017 by

Getting-Finance

Whether you’re searching for a new or used car in the Raynham 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 Silko Honda 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 Silko Honda 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 Raynham dealership. We can show you our new vehicle inventory in person, and help answer questions about things like gap insurance.

  • 2024 Honda HR-V MPG

    Looking for a small, agile Honda SUV that’s big on power, features, and fuel economy? Look no further than the new Honda HR-V, a sporty crossover that delivers robust and reliable performance without sacrificing an ounce of fuel efficiency on the roads of Brockton, Hanover, and beyond. Check out the 2024 Honda HR-V gas mileage…

  • 2024 Honda CR-V Configurations

    The Honda CR-V has a storied reputation for providing an incredibly comfortable driving experience on Raynham roads. While there was plenty to appreciate with its predecessors, this year’s Honda CR-V is aiming to take comfort to the next level on the roads of Brockton. The new Honda CR-V has been fully updated for the latest…

  • 2024 Honda Prologue Preview

      Honda has always been known for its state-of-the-art technology and industry-leading performance, and the brand is bringing a brand-new offering to the electric segment. The 2024 Honda Prologue promises to be one of the most impressive electric SUVs yet, generating up to 300 miles of range on a single charge! But, that’s just the…

  • 2024 Honda CR-V Dimensions

      2024 Honda CR-V Dimensions The Honda CR-V has long been a popular choice, known for its dependable performance. But is it the right size for you? Drivers in Brockton and industry experts alike agree that the Honda CR-V size strikes the perfect balance between comfort and practicality. Dive into the details below with the…

  • 2023 Honda Pilot Trim Levels

      What are the 2023 Honda Pilot Configurations? A Honda Crossover SUV can elevate your Brockton and Hanover travels, especially the new 2023 Honda Pilot trims. With the 2023 Honda Pilot configurations, you can enjoy different seven-passenger and eight-passenger seating to meet different needs. Learn more about the different Honda Pilot trims such as the…

  • 2024 Honda HR-V Interior

    The 2024 Honda HR-V is on the smaller side of the Honda SUV lineup, but that doesn’t mean that it’s going to leave you wanting more. With a spacious cargo area, comfortable seats, impressive interior features, and available leather upholstery, this compact vehicle sets a standard that few rivals can match. Wondering what to expect…

Posted in Honda News