 TITLE: Do More People Finance Auto Loans at a Bank or Dealership? CONTENT: What's the Best Way to Finance a Car?\n-------------------------------------\nWhat can we learn from these trends? And, more to the point, where will you find the best financing—at the bank or the dealership? The answer begins with your buying preferences.\nIf you decide to finance your car through your bank or credit union, you can get preapproved before you go car shopping. That way, you know in advance how much car you can afford and you aren't wedded to a particular car company or dealership. You can test-drive as many vehicles at as many dealerships as you'd like. You can also negotiate your best price independent of financing. So, for example, a dealer won't be able to entice you into a more expensive car by offering a longer-term loan to lower the monthly payments. You decide in advance how you're financing and enter the dealership with your details set.\nOn the other hand, financing through a dealership is convenient. You don't have to engage your financial institution in advance or follow up for final approval once you've made your choice. A dealer may shop your application among many banks, credit unions and finance companies, which can result in a great competitive rate. They may, however, take a cut for their services, which can increase your interest rate slightly. In other cases, a dealer might connect you with financing from the car manufacturer's financing arm. To incentivize sales, a dealership may offer zero-percent loans, cash back or other enticements—many of which are sweet deals.\nOf course, all financing opportunities are not created equal. Comparing rates, terms and incentives individually is critical. As usual, buyers with the best credit typically get the best offers. The company that handles your financing will check your credit score and report and will want to know your debt-to-income ratio to ensure you can afford your loan or lease. END