Which Car Loan is Best – Dealership or Bank?
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.
- 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.
- 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
Your Toyota 4Runner is an immense machine built with thousands of small parts that each work in tandem with one another to ensure you receive efficient performance and top-of-the-line capability on your Pooler commute and outdoor adventures. To keep your Toyota 4Runner running at its best, it’s important to adhere to its recommended maintenance schedule….
Drivers across the country recognize the 2021 Toyota Highlander for its exceptional capability and ability to handle heavy loads without breaking a sweat, but how about the Toyota Highlander Hybrid towing capacity? You’d be forgiven for assuming such an efficiency-focused vehicle isn’t able to compete when it comes to capability, but the Hybrid towing capacity…
The 2021 Toyota Sienna comes to Hilton Head area dealerships with an entirely redesigned interior and exterior, turning it into a luxury family van that runs on a hybrid engine. How much can a Toyota Sienna tow? The 2021 Toyota Sienna towing capacity reaches up to 3,500 pounds, the perfect amount for towing small boats, trailers,…