There are many considerations someone thinks about when purchasing a used car. One of the largest being how to pay for it. A majority of used vehicles are financed since this is an expensive purchase for most car shoppers A large factor when buying used vs a new car is the loan rate the credit union or bank gives you and the amount of money you are approved for.
Although finance is the focus here, it nevertheless has a large impact on insurance. If a bank issues an auto loan it will require certain levels of insurance on the vehicle that is collateral on that loan. Although auto loan rates are typically lower than personal loan rates, if the insurance is $100/month cheaper because you are a high risk category then going with a personal loan at a higher interest rate may make sense over an auto loan, since it could save your money. This does not change the fact you have less insurance on the vehicle and if something happens to it you may lose out overall but assuming all goes smoothly you might be fine.
You may already do your banking with one or two banks or credit unions. A dealership often does business with lots of banks and credit unions and the financing arm of the auto brands they sell. Working with a dealership has the advantage of convenience and speed. Large full service dealerships like The CarShopcan assist you arranging insurance and financing a car.
However be aware that with convenience that probably means you won't be getting as good a deal vs going through a local bank or credit union. There can be a lot of “gotchas” through dealership financing you may not be aware of and you should read terms carefully.
It is always smart to compare all your financing options and I recommend taking your time to consider who you will finance any car with. Searching for financing before starting the search for a car is a good idea. Personally I recommend using a local credit union over a bank or dealership. Many actually use the lower rates they get through a credit union and pressure a dealership to give better loan rates and terms.
Maybe you have saved up for a used vehicle and intend to pay cash for it. That's great as most dealerships tell salespeople that, “A sale today is better than a sale tomorrow.” This usually means you can pressure the car salesman to give you better deal on the spot with all that beautiful cash, but that may not always be the case. Since dealerships make more on the financing of cars most of the time they might be hard negotiating a better price. If that is the case then you should move onto another dealership and not waste your time.