Direct Lending vs. Dealership Financing


Buying or leasing a new ride from a dealership can be a great experience. Dealing with how you're going to pay for the vehicle, however, is usually a little less fun. Most drivers who are looking to purchase a vehicle need to rely on help from lending sources and financial institutions to help pay for it. Fortunately, customers have a number of financial options to help them out. Here are two of the most popular ones, direct lending and dealership financing, and what each is. 

Direct Lending


Direct lending involves obtaining a loan directly from a financial institution like a bank or a credit union. By choosing to use direct lending, customers can shop around for the financial group that offers the best loan and rate to meet their needs. Sometimes customers opt for direct lending because they want to get a loan through their current bank and consolidate all their bills in one place. When you choose direct lending, you know the credit terms in advance so you will know your rate and other terms when you are shopping. 

Dealership Financing


The other form of financial assistance is through the dealership itself. Dealership financing cuts out the middle man of the financial process by having customers work directly with the dealership to help pay for their vehicle. While dealership often will sell the contract to a bank, financing through the dealership can often be easier than trying to secure a long through a bank. This is because the dealership's finance team can help you on weekends and evenings when banks are often closed. 

Dealerships can often offer you a greater range of financing options since they work with multiple banks to help secure the best deal for you. Dealership financing is also able to provide you with access to any special manufacturer-sponsored low-rate, or incentive programs which are currently being run. A bank would be unable to offer these same incentives. 



Dealing with finances for a new vehicle can seem like a daunting task at first. However, it doesn't have to be. Come see our Shults Resale finance experts today and they can help determine the best financing option for your situation. 

Make an Inquiry

Info