The primary advantage is convenience. Most auto dealers have finance departments that will work with multiple lenders trying to find you a loan.
The primary disadvantage is cost. First, if you go elsewhere for the loan, you can use the loan amount to negotiate with the dealer on the cost of the vehicle. Second, you may be able to find a loan elsewhere for a lower rate than the dealer finance department.
The main benefit is convenience. The majority of auto dealers have finance departments that will contact several lenders in an effort to secure a loan for you.
The main drawback is the price. First, if you choose another lender for the loan, you can use the borrowed money to haggle with the dealer over the price of the car. Second, you might be able to locate a loan outside of the dealer finance division for a lower interest rate.
The amount of interest due each period expressed as a percentage of the amount lent, deposited, or borrowed is known as an interest rate. The total interest on a loaned or borrowed sum is determined by the principal amount, the interest rate, the frequency of compounding, and the period of time the loan, deposit, or borrowing took place.
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