2021 Lexus NX on Road

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

Not sure where to get a car loan when shopping for a new vehicle in the Palm Springs area? Is it better to finance with a bank or with a dealership? Learn what the best place to get a car loan is with the finance center at Shottenkirk Desert Lexus. We’ll help you learn the in’s and out’s of bank and dealership financing, so you can make your car loan shopping experience a little easier.



Where to Get a Car Loan

When car loan shopping in the Palm Desert area, you basically have two options to get a car loan: from the dealership where you’re buying a new car or from a bank or similar type of lender. Which one is the best place to get auto financing? Banks and dealerships offer different kinds of benefits, so it’s best to determine which location fits your circumstances.

Financing with a Bank

One of the best places to get a car loan is from a bank, and it’s a popular choice among Indio drivers. If your credit is less than ideal, then you may have a harder time getting a loan with a bank. But, there are some benefits to getting financing with a bank, like:

  • Pre-existing relationship with your bank
  • Set interest rates
  • Flexible payment schedule

It’s never a bad idea to speak to your dealership before applying at a bank since each dealership has different financing partners.

Financing with a Dealership

If you like a more personal connection and a quicker financing process, then a dealership is one of the best places to get auto financing. Here are the perks of financing with a dealership:

  • Multiple lenders means you can compare different deals and get the best rates.
  • Some dealerships will finance drivers with subpar credit and have other finance offers.
  • It’s easier to negotiate a down payment with dealer financing.
  • The finance application process is quick and easy.

To speed up the approval process, apply for financing at Shottenkirk Desert Lexus. If you’re looking to sell your old vehicle before upgrading, then learn how to sell to a dealership when you visit Shottenkirk Desert Lexus.

In-House vs. Bank vs. Credit Union Financing

When car loan shopping, you need to explore all of your options and find what best works for you. Besides dealership financing and going through a bank, there is also the option of using other lending services and credit unions. Here are some things to know about your financing options:

  • Bank Financing: After you apply for a loan at a dealership, the dealership usually sends that application to different lenders to try and get the best rate.
  • In-House Financing: Also referred to as “buy-here-pay-here” financing, this method allows you to get financing directly from a dealership, saving you the process of getting approved by a lender. This is a good option for buyers with subpar credit.
  • Credit Union Financing: You might save some money if you belong to a credit union by applying for a loan at that credit union.

To find out which option is the best for you, visit our finance department and speak with one of our team members to explore your options. For more buying tips like lease takeovers, visit Shottenkirk Desert Lexus.

Discover Your Options at Shottenkirk Desert Lexus

What’s the best place to get a car loan? That depends on which option offers you the best deal for your current circumstances. Visit Shottenkirk Desert Lexus in Cathedral City or contact us online to discover your options and get the financing you need today.

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