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

Car finance paperwork with pen


If you’re new to car loan shopping, it’s easy to feel overwhelmed. Even after you’ve finally found the vehicle that best fits your needs and budget, you need to decide where to get a car loan. You can take out a loan from a financial institution like a bank, or finance directly through your dealership.

So what’s the best place to get a car loan for drivers like you in Lakewood: a bank or a dealership? In the guide below, auto finance experts at the Genesis of Golden finance center explore the pros and cons of each option.

Car Loan Shopping in Lakewood and Westminster

Wherever you choose to finance your vehicle, the process works the same way: you’ll make monthly payments on your loan until you’ve paid back the cost of the car, plus interest. The “best” place to get auto financing really depends on your needs as a buyer and as a driver. Below, we’ll discuss which car-buyers will benefit from financing with a bank, and which drivers will see more perks by financing in-house with the dealership.

If you have questions about where to get a car loan or any other part of the car-buying process, don’t hesitate to reach out! Our team of auto finance experts are happy to offer expert advice and guidance.

Is a Bank or Dealership the Best Place to Get Auto Financing?

Once again, the best place to get a car loan depends on your financial situation and the kind of car-buying process you’re most comfortable with. Many Genesis drivers choose in-house financing because this option can make it easier to finance a car with bad credit. Read below to compare the price and cons of financing with a dealership vs. bank:

In-House Financing with a Dealership

  • Dealerships work with many lenders to provide you with the best rates possible.
  • Applying for financing is quick and easy – just fill out one form!
  • Select the best offers from multiple lenders competing for your business.
  • If you have a high credit score, many dealerships will offer special low-interest rates.
  • Most dealerships offer special financing and other incentives on your favorite models.
  • Dealerships are often more flexible than banks, and will negotiate with you on your offer – even if you have bad credit.

Financing with a Financial Institution

  • You may feel more comfortable working with your bank or credit union if you have a pre-existing relationship with them.
  • Some financial institutions may offer flexible payment schedules.
  • You can access low interest rates, lower loan minimums, and lower fees by taking out a personal loan with a not-for-profit credit union.

Find Out Where to Get a Car Loan in Golden

At Genesis of Golden, we strive to be the best place to get a car loan for drivers across Arvada! Our online tools are designed to make the car buying process easier than ever, from finding the right vehicle to car loan shopping. Pre-qualify for financing and value your trade to get started today!

Genesis of Golden 39.730322, -105.175529.