Which Car Loan is Best – Dealership or Bank?

November 28th, 2017 by

Silver Jaguar Driving

Whether you’re searching for a new or used car in the West Chester area, it’s likely that you’ll take advantage of car financing. However, it’s important to do your research before you sign papers at the dealership so you can ensure that you get the best interest rates and lowest monthly payment available. Find out whether financing through the dealership or through a bank or credit union is best for you, then rely on the Jaguar West Chester 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 Jaguar West Chester for All Things Finance

Whatever financing route you choose, you can count on our experienced finance department to help you through every step of the way. Contact us for more information, and make your way to our West Chester dealership to browse our new vehicle inventory in person!


  • 2019 Jaguar I-PACE Dimensions

    The 2019 Jaguar I-PACE boasts award-winning design and a unique silhouette that stands out against rivals like the Tesla Model 3. The design of this first-ever all-electric Jaguar allows for heightened performance and a spacious interior for all passengers on Chester Springs roads.  Explore the Jaguar I-PACE dimensions with exterior and interior specs and features to learn more…

  • 2020 Jaguar F-PACE Seating Capacity

    If you are searching for a unique luxury SUV with seating for five with plenty of amenities for every passenger, the 2020 Jaguar F-PACE is worth a look. Each row is spacious and well-appointed, so you can spread out and enjoy your drives around Chester Springs and Newtown Square. Interested in the latest high-end comfort features? Explore…

  • Jaguar XE SV Project 8 – Meet the Most Extreme Performance Jaguar

    Called the “Most Extreme Performance Jaguar Vehicle Ever”, the 2019 Jaguar XE SV Project 8 Edition is an achievement in engineering and design, having been hand-assembled at the Special Vehicle Operations Technical Center at the Jaguar headquarters in England. Learn more about the performance specs, features, and the Jaguar XE SV Project 8 price below….

  • 2020 Jaguar F-PACE Towing Capacity

    With the 2020 Jaguar F-PACE offering a maximum towing capacity of 5,620 lbs., you’ll be able to tow a camping trailer out from Chester Springs, a boat to the lake from Newtown Square, or a laden trailer across Aston. Engine options provide the capability you need, and towing features help provide faultless peace of mind. Check them…

  • 2020 Jaguar F-TYPE Configurations

    If you are considering a new sports car like the 2020 Jaguar F-TYPE starting at $61,600 MSRP, you’ll want to make sure you pick the right configuration for your needs in Chester Springs. Learn more below about the five Jaguar F-TYPE trim levels at Jaguar West Chester then check out the competition by comparing the Jaguar F-TYPE vs….

  • 2019 Jaguar I-PACE Colors

    The 2019 Jaguar I-PACE offers eleven exterior paint colors and eight different interior seating color options. But the I-PACE color spectrum doesn’t stop there! From exterior accent packages to real wood trim inside and even mood lighting, there are endless possibilities for you to customize your all-electric I-PACE. Explore Jaguar I-PACE color options and costs…