Which Car Loan is Best – Dealership or Bank?

June 19th, 2018 by

2018 Toyota Tundra Platinum CrewMax Interior

Whether you’re searching for a new or used car in the Savannah 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 Savannah Toyota 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 Savannah Toyota 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 Savannah dealership to browse our new vehicle inventory, such as the 2019 Toyota Corolla hatchback or other Toyotas, in person!


Learn More at Savannah Toyota

  • Best Restaurants in Pooler, GA

    Looking for food in Pooler, GA? No matter if you’re in the mood for breakfast, lunch, dinner, or even a late-night snack, there are plenty of Pooler restaurants to choose from. You’ll find just about anything you want in town too, including Mexican, Italian, and American cuisine. Explore the best restaurants in Pooler, GA below….

  • How Does the Toyota Pre-Collision System Work?

    The Toyota Pre-Collision System works by using sensors to monitor the road as well as your surroundings. It gives off audio and visual warnings if there’s potential for a collision. Having this system in your Toyota makes navigating Pooler safer. Learn more about this technology with us at Savannah Toyota today by taking your favorite Toyota…

  • What’s Inside the 2019 Toyota Highlander?

    The 2019 Toyota Highlander is smaller than the Toyota Sequoia, but this full-size SUV is extremely spacious without being bulky. The Highlander interior can comfortably seat the whole family without compromising cargo space. Explore its exciting interior features online before visiting Savannah Toyota to experience the Highlander interior in person! Learn MoreHighlander InventoryContact Us Toyota Highlander…

Posted in Buying a Car