How dealer financing works
When you finance at a dealership, the dealer submits your application to a manufacturer's finance company or partner lenders and presents an offer. It is convenient, and promotional rates on some new vehicles can be attractive, though they may require giving up a cash discount. Dealers may be compensated for arranging financing and often offer add-on products at signing.
Financing through a bank, credit union or matching service
Applying directly to your own institution before you shop gives you a quote to compare against. A loan-matching service can pass your enquiry to several lender partners; it does not lend money itself, and any lender it connects you with makes its own decision.
Comparing the offers fairly
Negotiate the vehicle price separately from financing. Then compare offers at the same amount and term, using the APR, the total cost of borrowing, fees, early repayment conditions and whether add-ons are included. The lower monthly payment is not always the cheaper loan.