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Car financing: compare the dealer’s rate with your own quote
The short answer
Get a written financing quote from a bank or credit union and ask the dealer to improve on it. Compare APR, fees, loan term and total repayment for the same amount borrowed. Calculate any rebate-versus-promotional-rate choice before signing.
How dealer financing works
A dealer can add a markup to the rate a lender approves. Ask the dealer to explain the rate it offers and compare it with independent financing quotes. A higher rate on the same balance and term costs more in interest, so use your actual quotes to calculate the difference.
Get preapproved first
Request a written financing offer from a bank or credit union before shopping. Compare it with the dealer’s offer using the same borrowed amount and term. Keep the vehicle price and financing terms itemized so you can evaluate both.
Ask for the buy rate
Ask: “What rate can you offer for this amount and term? My written alternative is [APR].” Compare fees and total repayment as well as the rate, and keep the vehicle price separate.
When dealer financing is the better offer
Compare promotional financing with rebates and your independent quote. Calculate total repayment for the same vehicle price and loan amount, then compare different terms and their effect on your budget.
Tell us what you’re planning and what you’d love.
Businesses reply with offers built around you, including what they can add.
Start a requestQuestions people actually ask
- Will the dealer improve its interest rate?
- Ask the dealer to compete with your written financing quote. Compare APR, fees, term and total repayment; the lender determines approval and available terms.
- Should I take the rebate or the promotional APR?
- Calculate each offer using the actual vehicle price, rebate, APR, fees and term. Compare the full repayment and confirm which incentives can be combined.
- Does applying for preapproval hurt my credit?
- Ask each lender whether the rate quote uses a soft or hard credit inquiry. Compare offers over a short period and check the credit-scoring guidance relevant to your application before relying on inquiry grouping.
- Is 0% dealer financing real?
- Compare the promotional financing offer with the cash rebate and your preapproval. Ask which incentives can be combined, who qualifies and which loan terms apply. Calculate the total paid under each offer before signing.