Bank or Dealership: Where to Get a Car Loan

Wondering about the best place to get auto financing? Car shoppers are all hoping to get the best deal possible on their next new or used Mercedes-Benz vehicle, which is why they often ask where the best place to get a car loan is. At Mercedes-Benz of Cincinnati, we’re here to help make your car loan shopping experience stress- and hassle-free. Feel free to reach out to our finance department at any time if you have any questions.

Car Loan Shopping Quick Tips

Wondering where to get a car loan? Your two main options when car loan shopping loan include:

• The Cincinnati dealership where you’re buying your vehicle
• A bank or another lending institution like a credit union

Both of these options offer different benefits to shoppers. 

Car Loans From a Dealership

A great place to get a car loan is at the Blue Ash-area dealership where you’re planning on buying the vehicle.

• Dealers help determine if leasing vs. buying is right for you. 
• Dealerships work with multiple lenders to ensure you’re getting the best rates possible. 
• Apply for a loan by filling out the online application form to get multiple options. 
• Multiple lenders are competing for your business, which often leads to competitive rates.
• Some dealerships offer options for those with bad credit scores.
• The dealership may offer financing incentives.
• You may be able to negotiate your down payment when financing with the dealership. 

Car Loans From Your Bank

When choosing where to apply for a car loan, you may be thinking of visiting your local Montgomery bank. Speak with your dealership first as they have different financing partners. If you don’t have the best credit score, you may have a harder time getting an auto loan offer from the bank. Even so, there are lots of benefits to choosing a bank, such as:

• You have a pre-existing relationship with your bank
• There are often set interest rates
• You may be able to set a flexible payment schedule

In House Financing vs. Bank & Credit Union Financing

When you shop for an auto loan, it’s important to differentiate between financing that a dealership can secure for you from a lender such as a bank, financing that the dealership itself offers in-house, and financing you seek out yourself by sending out credit applications to different banks or by using a service such as Lending Tree or Capital One Auto Loan Navigator. Here’s what you should know:

• Bank Financing: When applying for financing at a car dealership, they typically send that application out to different lenders to see where they can secure the lowest rates for you. They’re not providing the financing themselves. However, you can get approved right at home before visiting the dealership. 
• In House Financing: This is financing that’s provided directly by the dealership, so there’s no need to get approval from the lender. It often means higher interest rates, but this is an excellent option for shoppers with bad credit scores.
• Credit Union Financing: If you belong to a credit union, you can apply for a loan there, which may save money. 

Get Additional Financing Assistance at Mercedes-Benz of Cincinnati

If you have questions about your financing options, feel free to contact Mercedes-Benz of Cincinnati. Our financial experts near Sharonville will address your concerns and walk you through the financing process!