Tag Archives: Direct Lending

Direct Lending versus Dealership Lending

Buying a new car may not be an option for all drivers, especially if some dealerships require a lot of money up front. Fortunately, the modern market has two perfectly viable financing options that will likely meet the needs of most, if not all, drivers. Below you’ll find a comparison of direct lending versus dealership lending from our team here at Nissan of Silsbee.


Direct Lending

Buyers interested in direct lending will receive a loan directly from a financial institution, like a bank or credit union. Once approved, drivers use the loan to pay the dealership for the vehicle.

Choosing to go the way of direct lending will allow customers to compare several lenders before committing to a contract. Comparing credit terms and contracts can allow buyers to get a better deal in the long run.


Dealership Lending

Those who choose dealership lending will receive financing from the dealership directly. Like with direct lending, buyers enter a contract and use the loan to pay for the vehicle. The dealership can then sell or retain the contract.

Dealership lending offers on-site financing, which makes it more convenient. Some dealerships offer multiple financing options thanks to close relationships with financial institutions. Automotive manufacturers also offer special financing programs through dealerships, meaning buyers could find the best deal right at the dealership.


Contact us here at Nissan of Silsbee if you have any additional questions about how you can get into your next new car!