 TITLE: Bank or Dealership: What’s the Best Way to Finance a Car? CONTENT: Financing Through the Dealer\n----------------------------\nDealer-arranged financing works the same way as bank financing—the only difference is that the dealer is doing the work on your behalf.\nAfter you choose your vehicle, the dealer will have you fill out a credit application, which they'll submit to multiple lenders. This allows you to compare rates and terms to choose the best option for you.\nIn some cases, however, a dealer may negotiate a higher interest rate with you than what the lender offers and take the difference as compensation for handling the financing. In other words, you might not be getting all the information you need to make the best decision.\nIn general, you can usually get lower interest rates on a new car through a dealer than on a used car. In fact, some dealers may offer promotional financing on brand-new models, including rates as low as 0% APR to those who qualify.\nAnother form of dealer financing occurs when the dealership provides in-house financing. These buy here, pay here dealerships specialize in working with people with bad or no credit. But the costs and down payment requirements on these loans are high, and there's also a higher chance of repossession. END