Bank and dealership financing have their own advantages and disadvantages. If you’re buying a new car and have great credit, dealerships sometimes offer 0% annual percentage rate (APR) loans. However, getting preapproved by a bank or financial institution has several advantages, including:
Letting you shop around for the best APR Providing more flexibility for people with bad credit Giving you leverage when negotiating the price of your car
Remember that banks or other financial institutions may place limitations on the type of vehicle you can buy, including age and mileage.