Bank Auto Loans: Best Auto Loan Finance?

Bank Auto Loans: Best Auto Loan Finance?

Posted 6.12.2012 in Articles by Neil-Denny

Tired of your old car giving out on you or looking to buy a car for the first time? You don't have to wait around to win the lottery or become a millionaire overnight! Walk into your own bank or credit union, and you may just find an easier and more reassuring way to finance your next vehicle. By exploring the pros and cons of taking out a bank auto loan, you can find out if your bank is a more reasonable option than financing at the dealership.

The greatest advantage of taking out an auto loan at your bank is trust. Banks and credit unions tend to have a stronger reputation than other lending parties. Since you already have an established relationship, it makes sense for your personal bank to be a top choice for auto loan finance. Your loyalty is valuable, so to ensure customers are satisfied with their services, banks will offer more competitive rates, usually in the form of simple interest loans. 

Because of this ongoing relationship, you will also receive the personal attention and service you won't get at the dealership. The dealer's number one priority is to sell you a car. By visiting a bank or credit union for an auto loan, you won't have to deal with a last-ditch sales pitch for add-ons. Chances are your bank will tell you outright if you're paying too much for a car. On top of that, banks generally offer a number of additional perks that aren't available at the dealership or other sources of financing, like free life insurance or disability insurance for taking out a car loan. It also gives you one convenient stop to take care of mortgages and other types of loans. If your bank offers online banking, you can easily make payments without having to worry about extra service charges.

Before you settle on sticking to your bank, it's always a good idea to weigh your available options. Don't let customer loyalty keep you from finding a more suitable financing plan. You should still compare their rates and benefits with other banks and credit unions. Although it may be a great place to take care of your everyday banking needs, you may find another bank with better experience in auto loans. 

Despite the many advantages of taking out a bank auto loan, some customers still prefer to finance with the dealership. It allows you to negotiate the selection of your vehicle as well as your financing options, all in one visit, without having to communicate with an outside party. You also won't have to work around your bank's schedule, which has limited hours on nights and weekends. Still, these disadvantages are few, and your bank should still be at the top of the list when it comes to considering where to finance your vehicle.

Banks and credit unions are often more reputable than alternate lending parties associated with auto dealerships. The relationship you've built with your bank leads to customer service on a more personal level, better rates, and added incentives for taking out a car loan. Although your auto finance options are plenty, the same place you trust to take care of your savings and your checking account is likely to be the same place you trust to help you finance your next vehicle.



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