Bank vs. Dealer Financing — Which Is Better?
If you don’t have much experience in dealing with banks or any other financial institutions, deciding how to finance a new vehicle can seem like a daunting process. Should you take out a loan from your bank to pay for your car, and then repay the bank? Or should you let your dealership be your financial middleman between you and the banks, and then pay off your car in monthly installments?
Luckily, there is one option that is better than the other.
Not all Financing is Created Equal
Remember: Financial institutions exist for different reasons, depending on the markets and industries that they serve. While banks exist for a whole host of reasons, one of which includes lending, the finance departments at auto dealerships exist solely to help facilitate the sales of automobiles. And thanks to that level of specialization, we are able to provide plenty of advantages within the field or car loans and credit lending, including:
- Lower interest rates
- Same-day approvals
- Access to multiple lenders
- One-stop shopping
- No appointments necessary
- Extended terms
- No credit, no problem
Don’t tie up your assets at a bank. Free up your credit line for any of life’s other needs and emergencies. When you choose to pursue in-house financing at Wood Wheaton GM in Prince George, B.C., you get the same flexible terms and the same variable & fixed interest rate plans as you can get at a bank, but with the added benefit of helping you to repair and re-establish your credit, making you more attractive to major lenders in the future.
That’s not all! When you team up with our Finance Department, you’ll be able to share in all of our current and seasonal Finance Specials that you simply cannot receive from your local bank. And through our website you can Apply For Credit all without leaving your home, or read up more on the deals that we extend to all recent graduates.
We hope we’ve helped make it more clear why there’s no better institution through which to finance your next vehicle than through our Wood Wheaton GM dealership. But should you have any questions, simply Contact Us and we’d be happy to discuss the issue further.
What is My Credit Score?
Financial institutions use your credit score to evaluate the risk of financing your purchase of a vehicle or other item. The all-important number on your credit score indicates the risk that a lender will take on by approving you for a loan or financing.
A higher credit score is better, and indicates a lower risk. If you have a high credit score, you will generally be able to access lower percent financing rates for more flexible terms. The number on your credit score ranges from 350 to about 850.
How is it Calculated?
A number of factors influence your credit score including the following:
- Have you made past payments on time?
- How large is your current debt load?
- Have you been turned down for credit before, or made past inquiries?
- Are there any liens, judgements or other public records on your account?
How can I get My Credit Score?
Finding out your credit score is easy. Contact either of the two major credit reporting agencies in Canada and they will provide you with a detailed credit report:
While you aren’t required to bring your own credit report when purchasing a vehicle, it helps you to be informed during the car financing process and will help you understand your options and make a decision on your purchase.
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