What’s the distinction between dealer-arranged and bank funding?

What’s the distinction between dealer-arranged and bank funding?

With dealer-arranged funding, the dealer collects information away from you and forwards that information to at least one or maybe more potential car loan providers. Instead, with bank or any other loan provider funding, you get right to a bank, credit union, or any other loan provider, thereby applying for a financial loan.

Bank loan providers can “preapprove” you for a financial loan. You, the lender will quote you an interest rate, loan term (number of months), and maximum loan amount based on factors such as your credit score(s), the terms of the transaction, and the type of vehicle if they are willing to make an auto loan to. Continue reading “What’s the distinction between dealer-arranged and bank funding?”