Dealership financing can seem like a daunting situation. Many buyersdealership-financing write off the dealership entirely before they even purchase a vehicle. They’ll obtain a rate from a bank or lender prior to stepping on the lot, and once the car is purchased, they never look back. But what if we told you the day has come to consider listening to what the dealership’s finance department has to say? What if, by some miracle, your rate could actually decrease through a dealership? Well ladies and gentleman, it’s true…and here’s why.

Dealerships make money off of financing. We all know that. That being said, most folks don’t seem to know how it works, and why it could benefit them. Basically, dealerships tend to have plenty more loan companies and banks to choose from when it comes to financing. If they can approve you for a rate that is lower than your third party, then the difference could go to them.

For example, let’s say you were approved for 5 percent for your auto loan. When you take that to the dealership financing department, they may find you a better rate: say 4.25 percent. The .75 percent difference goes back to them as a “thank you” from their lender for getting your business with them. It’s a win-win on all counts.

Dealerships will likely be more motivated to help get you a lower rate with them, rather than a third party. Much of their overall income is channeled through loans and interest. This can result in better rates for you, and acquired business for them. So the next time you step onto the lot, go ahead and get pre-approved by your personal bank…just don’t forget to make sure to check out what the dealership financing rate is. You might just end up saving some bucks.

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