What is the Best Place to Get a Car Loan?

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When shopping for a vehicle, Mesa drivers are looking to get the best deal possible. So, where is the best place to get auto financing? You can finance your vehicle with the dealership, or you can secure automotive financing with a bank or credit union. The best place to get a car loan depends on a variety of factors. Learn more about car loan shopping with the team at Cactus Jack's Auto. 

Car Loan Shopping

Wondering where to get a car loan? Your two primary options when car loan shopping loan include:

  • The dealership where you’re purchasing your vehicle
  • A bank or other lending institution like a credit union

One option may be better suited to your budget, so it is important to weigh your choices. 

Why Choose a Dealership? 

There are several reasons to consider a car loan from the dealership: 

  • Dealers can help you decide whether to lease or finance. 
  • Dealerships work with a variety of lenders, so you can feel confident that you are getting a great deal. 
  • Applying is hassle-free because you only need to fill out one form to get multiple options. 
  • Multiple lenders are competing for your business, and that competition can benefit you.
  • If your credit score is less than ideal, dealerships often have financing plans for those with low credit scores or those who have not yet established credit. 
  • Some dealerships provide financing incentives. 
  • You may be able to negotiate your down payment when financing with the dealership. 

Why Choose a Bank? 

You may also be considering a car loan from your local bank. It is a good idea to speak to your dealership first because a dealership has different financing partners. If you have a low credit score, financing with a bank could be a bit more of a challenge. However, financing with a bank does have its perks:

  • You have a pre-existing relationship with your bank.
  • There are often set interest rates.
  • You may be able to set a flexible payment schedule.

Which Option is Best for You?

  • Bank Financing: When you apply for an auto loan at a car dealership, in most cases the dealer will send your application out to different lenders to find the best possible rate. This means they are not actually providing the financing themselves. 
  • In House Financing: In-house financing, sometimes called “buy-here-pay-here” financing, is provided directly by a dealership. The approval of a lender is not required. Keep in mind that this type of financing comes with higher interest rates, but it can be helpful for car buyers with little to no established credit
  • Credit Union Financing: If you belong to a credit union, you can apply for an auto loan there and potentially save money. 

Cactus Jack's Auto Makes Financing Hassle-Free

For more information about your financing options, reach out to the team at Cactus Jack's Auto. We want to help you find a car you love at a price you can afford.

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