Financing with a Bank or Dealership: What’s the Difference?

Beachwood-area drivers have many options to consider during the car loan shopping process. Taking your own unique needs into account, how do you choose the best place to get a car loan? It comes down to many factors, including your credit rating, your relationships to local banks, timing, and location. Like anything else, it’s best to shop around when you’re car loan shopping. Here’s what you should know.

Car Loans From a Dealership

If you’ve gone back and forth on where to get a car loan, you may find that a dealership is simply the easiest and most sensible option. After all, if you can take care of the entire car buying process at one location, you’re definitely going to get the bonus of streamlined convenience. You’ll also benefit from these other exciting perks:

• Dealers can help you determine what cars in their inventory best fit your budget and your driving needs.
• Dealerships work with a variety of lenders to get you a great rate. They basically do the car loan shopping for you.
• It is easy to apply. You only need to fill out one form to get multiple options, and the best place to get a car loan is bound to be found among them.
• Multiple lenders are competing for your business, which can lead to a better rate.
• Some dealerships offer options like guaranteed financing for those who have issues with their credit.
• The dealership may offer financing incentives to those who start their loan on site.
• You may be able to negotiate a lower down payment when financing with the dealership.

Car Loans From a Bank

When deciding on where to get a car loan in Mayfield, you might consider your local bank or credit union. Speaking with your dealership before applying at your bank is a good idea because each dealership has different financing partners. This will give you multiple options to choose from. If you have less-than-perfect credit, a bank might not be the best place to get auto financing. Despite this, there are some benefits, including:

• Even with bad credit a bank might be the best place to get a car loan if you have a pre-existing relationship.
• There are often set interest rates that banks stick to, so there will be less variation between your offers.
• If you need a flexible payment schedule a bank might be the best place to get auto financing.

Find the Best Place to Get Auto Financing with Mercedes-Benz of Bedford

If you’re anywhere near Cleveland or Lakewood, contact the Mercedes-Benz of Bedford finance center for all your auto financing needs. Our knowledgeable, professional staff is here to help you make the right financial choice.