What’s the difference between direct lending versus dealership lending? Direct and dealership lending are the two primary financing options for drivers in the market for a new car. Both have their advantages and each will benefit a different type of buyer depending on their financial situation. Check out this short comparison of direct lending versus dealership lending from us at SouthTowne Hyundai!
Benefits of Direct Lending
By getting a loan from a bank, the customer is taking part in direct lending.
One of the primary benefits of direct lending is the ability to compare loan offers and terms from competing financial institutions. By doing so, buyers can know the terms before purchasing a vehicle. Knowing the terms of the loan in advance is a benefit in itself.
Benefits of Dealership Lending
Those getting financing directly from the dealership are taking part in dealership lending. The primary difference between the two is that the dealership can sell the contract to a financial institution after signing.
Fortunately, dealership lending comes with multiple benefits as well. An in-house finance department and working relationship with surrounding financial institutions mean both the convenience of a timely response and only having to fill out a single loan application. Some automotive manufacturers offer special incentive programs through dealerships, further increasing the savings customers experience.
Check out our lending options at SouthTowne Hyundai in Riverdale, GA today. We will work hard to get you the best auto loan in the area.