When the time comes for your next car purchase, the first thing you need to do is choose whether you will receive auto finance by going straight via your bank or by going through the dealer.

30% postponed car purchases in 2021, and 25% bought used. In 2022, 50% will delay buying cars and 40% will buy old.

There are significant differences between the two regarding your overall experience, the rates and terms made available to you, and the loan length.

Many people believe that they may put off purchasing their next automobile until they have accumulated sufficient funds for the first deposit.

Certain banks may permit you to put less money down—and keep interest rates and monthly payments lower, but one of the hidden drawbacks is that your car’s value may decrease quicker.

There are benefits to going into debt that go beyond the false logic of what appears to be saved based on cash alone. When the cost of financing frequently outweighs the entire amount saved upfront on a purchase, delaying while making a car purchase will not save you any money. Financial experts recommend carefully reviewing the APR (annual percentage rate) rates available from the various creditors.

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How to choose between getting an auto loan from a bank or a dealership

Before applying for funding, you should consider each choice’s potential advantages and disadvantages.

Bank financing

Going straight to your bank or credit bank is advantageous for several reasons, the most important of which is the likelihood that you will be offered lower interest rates.

Financing through a bank or credit union can offer considerably more competitive rates than dealers, who usually have substantially higher interest rates.

In addition, financial institutions such as banks and credit unions offer a diverse selection of goods, which means that you have a greater chance of finding a method of financing suitable for your needs.

Disadvantages of financing a car through a bank

However, the processing time for loans from non-traditional financial institutions can be lengthier, and you might be required to visit a physical location or hand in your application in person. If you have a low credit score, there is a good chance that you will not be approved for a loan.

Before determining whether to finance your car purchase through a bank or credit union, it is essential to evaluate both the timeliness of your car purchase loan and the state of your credit.

Financing from the dealer

If you go via the dealership to get your car purchase financed, you can take advantage of many incentives to make the process go more smoothly. You will have access to the financing office at the dealership, saving you the time and effort you would have spent negotiating terms with many other lenders. Additionally, dealerships frequently provide manufacturer discounts, including rebates and other financing specials for car purchase.

Obtaining financing for a vehicle through the dealership

If your credit isn’t in the best shape and you don’t have an active relationship with any banks or credit unions, talking to a dealership about financing may be your best bet.

Advantages of financing through the dealership

Convenience is the primary advantage of obtaining financing for your automobile through the dealership. You won’t be required to submit an application for financing through a bank and wait for approval, which could take several days or weeks. You could go to the showroom instead, get behind the wheel of your brand-new vehicle, and drive straight home.

Additionally, if you have a co-signer, you can bring that individual to the store to make the purchasing procedure less stressful. This is an option if you have a co-signer.

To Sum Up

To summarise, financing a car purchase through a dealership can benefit acquiring a new, certified, or used vehicle. You will be able to save time and effort and have an easier time getting your hands on the steering wheel of the car of your dreams with the least amount of fuss possible.

Derek Koloditch

February 27, 2024.

I recently purchased a used 2017 Subaru Outback Limited via Car Concierge Pro. The experience was definitely a positive one overall. As someone who purchases a car once a decade or so, I simply do not trust dealerships. They have a variety of tactics to hide the truth about pricing and vehicle history to squeeze every penny from you. Services like Carvana and Carmax charge more for negotiation-free purchasing (shouldn't it be the other way around?) and up-sell you on warranties, Either way, you’re at a disadvantage. So I went looking for an alternative and ran across the concierge option. I chose Car Concierge Pro because pricing and payment are straightforward, and they're technologically more up to speed than their competitors. Everyone on the team assigned to me was very friendly, helpful, and accommodating. My experience was more of a collaborative effort with quite a bit of back and forth around searching, researching, and negotiating. The team was with me every step of the way, handling all the legwork or providing guidance and assistance as necessary. You can be as hand-off or hands-on as you like. If you want to handle searching yourself and let them handle negotiations, you can do that too. Here are some helpful learnings if you decide to go the same route. 1) Try to research models and narrow down what you're after ahead of time. Best model years, common failures, expected repair costs (Consumer Reports, CoPilot, and ChatGPT were very helpful), regional pricing trends (see Auto Tempest). This isn't a requirement, but I personally found it to be helpful. Doing so will help your team hit the ground running and alleviate some stress for you early on. Of course, they’re there to help you dial in on your preferences as well. And keep in mind things may evolve and shift as part of the process. As an example, I focused on the 2019 and later model of Subaru Crosstrek PHEV initially before realizing battery replacement would be a huge hidden expense for very limited range. I discussed this with my team and we pivoted accordingly. 2) Keep your eye on the details. Dealerships might say one thing and do another, or they'll inflate the numbers in one area (like optional packages) to give the illusion of a deal. They might even take favorable photos to hide flaws (like a cracked front bumper on one of the listings I picked). Your team will be very vigilant for these tactics, but it doesn't hurt to be redundant if you're inclined to. For obvious reasons, dealerships do not like dealing with concierges, so they might try and sneak things past them if they realize who they’re dealing with. Your team will reiterate this before closing the deal and signing any papers. 3) Use Lemon Squad for pre-purchase inspections. Ordering an inspection from their site is dead simple, especially compared to their competitors. You'll get photos, video, diagnostic scans, a test drive, and a report, which you can share with your team or knowledgeable friends / family for feedback and use to negotiate further. Better pricing might be available via a local mechanic, but for remote inspections, Lemon Squad is the way to go. As of this writing, pricing starts at $220. You probably don't want to pay for more than two inspections (the money adds up quickly, obviously), so use them once you're ready to commit to a vehicle assuming everything looks good. 4) Use a reasonable search area and adjust accordingly. The wider the search area, the better range of pricing and deals. One caveat is that shipping can get pricey and cut into your savings the further out you go. My suggestion is to stick within a 1000 mile range initially. If you find a good deal on the edge of that range, it might be cheaper to fly out to pick up the car and drive it back. A 16 hour drive is much more doable than a 26 hour drive. All in all, I’ll be going this route again in the future when the time comes. The options + savings are better and it alleviates a notable degree of stress from a generally unpleasant experience. And I can’t recommend Neel and his team enough.

Joseph Flint

February 21, 2024.

I had a very good experience with Car Concierge Pro. Shainit and the gang kept me informed every step of the way, found the car I was looking for and helped me sell my car. Everything was smooth and they were always accessible for questions, etc. Very glad for their firm and strongly recommend.

Jacob Palecki

February 5, 2024.

The team was very diligent and responsive, made the process very easy. Thank you!!

Kalp Parikh

January 23, 2024.

I used them for selling my car. They are amazing to work with right from beginning to end. I got a very nice deal for my car all thanks to the staff!

Daniel Brouder

December 10, 2023.

Shainit did a great job. Service was worth it. He found a car for me 100 miles away when multiple dealers told me there were no models available within 400 miles, and my only alternative was to order this model from factory, which would take a few months and the price was not guaranteed. Appreciate Shainit’s assistance. Thanks