What Is Dealer Financing?

Dealer financing allows you to finance the purchase of your car with the same dealer that sold it to you. Here are the basics of dealer financing and what you should expect from it.

Dealer Financing

Most of the time, when you work with a car dealer, they are going to have an in-house financing company that can finance new car purchases. If you do not qualify for their financing, they typically have a number of other financing sources that they will turn to to help you get approved.


This process is very convenient, and it can save you some time. When you are out shopping for a car and decide that you want one, they can typically get you financed within a very short period.


Although this process is convenient, you need to be careful when using it. When you finance a car with a dealership, you should make sure that they are not taking advantage of you. Since they are going to be dealing with the price of the new car that you are purchasing, the financing terms, and possibly, your trade-in, they have a lot of room to play with. Make sure that you are getting the best deal that you can before you sign.

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