There are a few things you should consider prior to deciding if a bank or dealership loan is better for you. First, you should consider the total cost of the loan. This means you should pay attention to the interest rate and loan duration. Car dealerships, on average, can charge around 3.70%-4.50% in interest for a car loan, while banks typically charge 1.99-3.00%. The duration of the loan is important to compare as well, as you will generally pay more with a "cheaper" loan over a longer period of time. In addition to interest rates, dealerships tend to charge higher administrative and processing fees than most banks. Moreover, many dealerships charge customers who want to repay their loan early. While some banks do as well, it is worth comparing the miscellaneous fees when choosing a lender. You should also keep in mind the ease of obtaining either loan. For example, those with poor credit might have an easier time accessing a loan from a dealership rather than a bank. Be wary, however, since they might charge higher interest rates given the situation. Moreover, some dealerships might not check credit score, and instead rely exclusively on your previous bank statements.