Whether you’re ready to buy a new Volkswagen or a used car in the Glenview area, it’s likely that you’ll take advantage of vehicle financing . But it’s imperative that you do your research before signing on the dotted light to ensure that you’re getting the lowest monthly payment and the best interest rate available for your car or SUV. Learn more about the differences between financing through the dealership versus financing with a bank or credit union to determine which is right for you, then rely on the Jennings VW finance department to walk you through the process!
How to Find the Lowest Rate
There’s no surefire way to tell whether your dealer will offer a lower interest rate than your bank; in many cases, dealer financing is actually the same as bank financing. The dealer simply goes to the bank and does the legwork for you. However, it can be beneficial to go to your bank before choosing your vehicle so you can find out their rate first. Then, you can compare that to your dealer’s and see if your dealer can match the rate if the bank’s is lower.
Dealer Financing
- Pros : Automakers will occasionally have promotions where they offer very low interest rates on new cars, which a typical bank wouldn’t do. Dealers will also “shop around” so to speak, and will find the best bank rate in the area.
- Cons : Dealer financing is a common option because it offers the simplest route to buyers – they can choose and finance without leaving the dealership. However, it’s important to ensure that your dealership isn’t marking up the bank’s rates in order to make money.
Bank Financing
- Pros : The main advantage of car financing through a bank is that they won’t mark up interest rates as some dealers might. Because of this there’s no middleman, so rates could potentially be better.
- Cons : You can negotiate interest rates with your dealer, but banks will typically offer just one rate. They also won’t shop your credit around to lenders like dealers do.
Rely on Jennings VW for All Things Finance
Whether you opt to finance with the dealership or the bank, you can rely on the knowledgable Jennings VW finance department to help you through every step of the way. Contact us for more information, and make your way to our Glenview dealership to browse our new vehicle inventory in person!
