Am I required to get my auto loan through a dealership?
No, you don’t have to get a loan from the dealer. In fact, you may get better interest rates and auto loan terms if you get quotes from other lenders before you shop for a car.
When you shop for a car or auto loan, there are different ways you can secure financing. You can go directly to a bank, credit union, or other lender.
It’s common for people to get a loan through the dealer because the car shopping process often starts with people looking for a car first. Then, people get introduced to the dealer’s finance and insurance (F&I) department to discuss financing. But in fact, you may save money over the life of your loan if you get preapprovals from multiple lenders before you shop for a car.
A loan quote from a bank, credit union, or other lender can help you negotiate a better deal. You can compare what you’re offered by the dealer and decide which loan to accept. If you do decide to ask about dealer financing, know that it is negotiable.
If you experience an issue with an auto loan, submit a complaint with the CFPB.
See different ways to get an auto loan
You have several options to consider when buying a new car or getting an auto loan. Learn how they can affect your overall money picture.