If you’re going to observe well, you’re going to see that car dealerships have doubled or tripled in numbers for the past years. This could explain the growing desire of people to have cars. Competition has also ballooned for these car dealers, so they need to improve the marketability of their deals. Banks, on the other hand, also upped their games—attracting hundreds of clients far and wide. In many ways, banks can be better than traditional car dealers, but this is not a hard fact. Like all other things, the gap between banks and car dealerships can really be unstable.
Banks are More Transparent
Transparency is very important in lending. As a client and borrower, you have the right to know everything about the process. You can also question the lender if some detail is amiss. Car dealerships are notorious for their lack of transparency in business, though this is changing. Banks, on the other hand, are downright transparent because they operate under strict legal conditions. Despite this, you still need to be on your toes when transacting with a bank.
Banks Don’t Have Complicated Processes
While not all car dealerships have complicated transactions, there are still some who leave their clients scratching their heads. A car dealer may involve third-party firms in financing or speculating the car that the client wants. Also, the dealership may cut deals with other parties—all in the middle of your transaction! Banks have strict, unified methods. They will finance the purchase of your car—period. There are no other parties involved in the transaction, and the amount that you have to pay monthly is specified. The potential downside is banks can be picky and they have strict credit checks.
Banks are Honest (Sort of)
Honesty is very important in the business of car loans. If a lender is honest, then its reputation will be at stake. While not all banks are honest in their processes, most of them abide by legal standards. If you want a loan within days, the bank can deliver—once you pass all of the necessary checks. For car dealerships, the situation can be different. You may need to seek the help of an expert to see the state of the car that you want. True—you can choose from dozens of cheap and available cars, but is it worth your cash? You need to observe the dealer, the car, and the whole process of the negotiation.
To make it safe, just transact with a bank near you. The process may be longer, but you can get your auto loan without any potential hazards.