Bank vs. Dealership: Where’s the Best Place to Get Auto Financing?

Car shoppers visit our Bloomfield Hills dealership in hopes of securing the best deal possible on their next new or pre-owned Mercedes-Benz vehicle. That’s why many people often ask about the best place to get a car loan – is it a bank or at our dealership? The finance team at Mercedes-Benz of Bloomfield Hills is here to explore your options as your car loan shopping in the West Bloomfield area.

Car Loan Shopping

If you are questioning where to get a car loan, you have two main options during your car loan shopping search:

• At the dealership where you’re buying your car
• A bank or other lending institution like a credit union

Both options offer benefits to car shoppers.

Car Loan Shopping at a Dealership

One of the best places to get auto finance is at our Southfield-area dealership where you are buying your vehicle.

• Dealers can help you determine if leasing vs. buying is right for you.
• Dealerships work with multiple lenders so you get the best rates possible.
• It is easy to apply. You only need to fill out one form to get multiple options.
• These lenders are competing to get your business, which often leads to a better rate.
• Some dealerships offer options for those who have credit issues.
• The dealership may offer financing incentives.
• You can try to negotiate your down payment when financing with the dealership.

Car Loan Shopping at Your Bank

Many car shoppers may think about visiting their local Birmingham-area bank. Discuss your options with our finance team before applying to your bank because we offer different financing partners. If your credit score isn’t ideal, you may have a hard time getting approved at the bank. With that said, there are some benefits of financing with your bank:

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

In House Financing vs. Bank & Credit Union Financing

It’s good to know the difference between finance that a dealership offers in comparison to a financial institution like a bank or credit union. Or even looking for financing on your own by sending out applications to services like Lending Tree or Capital One Auto Loan Navigator.

• Bank Financing: When applying at Mercedes-Benz of Bloomfield Hills, we typically send out the application to different lenders to see who will offer you the best rate. We’re not the ones providing the financing. You can get approved before stepping into the dealer by shopping around for your financing.
• In House Financing: In-house financing is provided directly by a dealership, so you won’t need to get approved by a lender. However, it does sometimes mean higher interest rates, but it’s a great option if you don’t have a strong credit report or history.
• Credit Union Financing: If you belong to a credit union, you can apply for an auto loan there. They may be able to save you money.

Explore Your Financing Options at Mercedes-Benz of Bloomfield Hills!

If you have any more questions about where to get a car loan, give us a call at Mercedes-Benz of Bloomfield Hills. Our financial experts are more than happy to address your concerns and walk you through the financing process.