How does applying for a car loan from a bank works?

Go to the bank of your choice and get pre-qualified or a line of credit, then you can deal with the dealer on your own terms, with so called cash from your line of credit.

OK. Sooo when you go to the bank to get a car loan you get the amount of money that you would owe to the dealership from the bank. The money from the bank goes directly to the dealership and whatever debt you would owe to the dealership is automatically paid off. So you owe nothing to the dealership. But you owe to the bank now the amount of money they paid the the dealership. And honestly getting a better deal can come from either the bank or the dealership. You need to cover you bases and see what you can get. honestly if you were to get a deal it would be from the dealership because they can take money off the the original price or help you out. The bank will only pay what they are told to pay from the dealership and then charge you for it.

Banks lend money. Dealers sell cars.

If you apply at a dealer, they will generally get a bank to lend to you and charge you more for it.

You only owe one lender after you buy a car.