 TITLE: Bank or Dealership: What’s the Best Way to Finance a Car? CONTENT: How to Choose the Best Option\n-----------------------------\nIn any situation, it's best to choose the option that will save you the most money. Unfortunately, it's not always easy to know what that option is upfront.\nAs a result, it may be worth trying to get preapproved by a bank or credit union before you head to the dealership, and then asking the dealer to get quotes as well. That way you can compare and determine which option is best.\nIt can take some time for you to gather quotes from individual banks and credit unions.\nIf you have bad credit, it may be especially important to look for options through banks and credit unions. Even if the interest rate is higher than you might want, it can still be a better setup than what you'd get with a buy here, pay here dealership.\nRegardless of which option you choose, it's important to know that applying for auto loans can affect your credit scores. Every time you apply for a loan, the lender runs a hard inquiry on your credit report, which can knock a few points off your score.\nApplying for multiple loans in a short period can compound that negative impact, but if you do all your rate shopping in a short period—typically 14 days, but sometimes longer—all the inquiries are combined into one when calculating your credit score. END