The short answer is that the best lender for an auto loan is the lending service that can provide the loan that best fits your needs. This means a lender that can offer the lowest interest rate and can offer a window of time to pay back your loan that is reasonable for your income but won't leave you stuck paying off the loan for too long. Financing through a dealership could include hidden fees and caveats. Dealership loans also tend to have higher interest rates. However, financing through a dealership is typically easier as you can walk in to test drive, be approved that day for a loan, and walk out of the dealership with the keys to your new car. Financing through a bank or credit union requires more research and for you to seek out the loan. However, a bank may be able to offer better interest rates and may be able to work better with your specific needs.