3 Reasons To Get An Auto Loan From A Bank Instead Of A Car Dealership

Buying a new car can be very exciting, but since a new vehicle can be quite expensive, most people do not have enough cash on hand to pay for the purchase in full. Thus, taking out an auto loan is necessary for most people. If you're planning on buying a new car in the near future, you may be wondering if you should take out an auto loan from your bank or wait until you are at a car dealership to learn about their auto loan options. In most cases, you will benefit from getting your car loan through your bank instead of a car dealership. Some of the top reasons to choose to work with your bank when you need an auto loan include:

Get Pre-Approved in Advance

When you apply for a car loan through your bank, you can typically find out if you are approved within a short amount of time. Once you are pre-approved, you will know exactly how much your bank is willing to loan you, as well as what your monthly payments will be. Being pre-approved means that you can head to a car dealership with the peace of mind of knowing that you already have financing in place; you won't have to sit in the waiting room of the finance department waiting to find out if you will be approved for an auto loan through the dealership's lenders.

A Bank Has No Interest in Selling You a Car

If you opt to take out an auto loan from your bank, you will have the upper hand when you begin shopping for a car at a dealership. Since you will know exactly how much your bank will give you for an auto loan, you can let your car salesman know the amount upfront. This will help you avoid having to deal with upselling techniques or being shown cars that cost more than you want to pay. In addition, when you already have your financing in place, a car dealership won't try to tempt you to buy a more expensive car by offering an affordable monthly payment but extending the terms of your loan by one or two years.

Better Interest Rates

While car dealerships may advertise very enticing financing options, only people with the very best credit can qualify for them. For the majority of people who have average to good credit, a bank is much more likely to over a lower interest rate on an auto loan than a car dealership will. Securing the best interest rate possible can help you save thousands of dollars over the duration of your auto loan. Contact a bank like CommunityBank of Texas to get started.


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