Dealer Financing

Quick Summary

What's the difference between getting a car loan at the dealer and getting a car loan somewhere else? Some people may be surprised to learn that you can even get auto financing at other locations. Dealer financing is immediate, fast, and tends to include some introductory rates and deals that, if properly handled, can help you save even more money.

Dealers do not provide loans themselves – that's not part of their organization. However, they do have close connections with specific lenders, and will help arrange the loan for you as part of their services. The lender, not the dealer, will hold the lien for your vehicle until you finish making payments. This degree of separation has both pros and cons for borrowers, but it does tend to offer a speedier solution that avoids making trips back and forth between the lender and the dealer. Loanry provides information on the preferred dealers in your area to help you find the right fit before you make those trips.

Advantages & Disadvantages


-Allows for negotiation and preparation before the loan. While knowing what the amount that you can qualify for before visiting the dealer is useful, the loan process itself takes place after you come to agreement on vehicle pricing. Some customers may prefer this arrangement since it puts the negotiation phase up front and leaves the loan work for later.

-Simple solutions for your busy life. Dealer financing is designed to be simple and clutter-free. If you want to get into a vehicle as soon as possible, this is a solid choice: Loanry can help you set up an appointment, secure your dealer financing ahead of time, and drive off without wasting time.


-May miss out on some discounts. While dealers have their own unique discounts, so do banks and credit unions, especially when it comes to customer loyalty. It's a good idea to look at both sides before deciding.

-Going in unprepared has consequences. While dealer financing may try to uncomplicate the loan process, that can make it easier to make mistakes if you don't know what to expect. Do your research beforehand to understand what sort of terms to expect, and what the offers really mean for your monthly payments.

What Should I Know About Dealer Financing?

Please note that dealers may be able to shift the price of their models, but they have little control over the loan process itself. Dealer financing terms and discounts are typically decided by manufacturers and lenders – the person you are dealing with can't change those numbers. If you want to negotiate, do it if you make an offer for the car, not while you are completing the loan process.