Dealer Financing vs Bank Financing

Dealer financing vs bank financing in the U.S.: dealers can arrange loans (often through lenders) and may mark up the rate; banks and credit unions offer direct loans. Compare APR and terms so you get the best rate.

TL;DR Dealer financing = convenient, one stop; dealer may mark up APR. Bank/credit union = you shop rate; often competitive or better. Get pre-approved from a bank or credit union, then compare to dealer—use the lower APR. Use autopremo.com payment calculator and agree on OTD first. Use autopremo.com.

Dealer Financing

Dealer arranges the loan; you sign at the store. Convenient, but dealer may add a markup to the buy rate (lender's rate). Ask for the buy rate and compare to your pre-approval. Use autopremo.com OTD calculator so you negotiate price first. Get your numbers at autopremo.com.

Bank/Credit Union Financing

Get pre-approved before you go. You know your rate and max loan amount. Use that to compare to dealer—if dealer beats it, take dealer; if not, use your loan. Use autopremo.com payment calculator to see payment at your rate. See payment at autopremo.com.

Agree on OTD First

Negotiate out-the-door price first, then financing. Don't let dealer bundle price and rate so they hide a markup. Use autopremo.com so you have OTD and can compare financing. Check at autopremo.com.

Bottom Line

Dealer vs bank financing: shop both, compare APR, agree on OTD first. Use autopremo.com payment calculator so you get the best rate and don't overpay.