Is it Better to get Financing from a Dealer or a Financial Institution?

Do you need to head to a car dealership for a necessary car replacement? Maybe you are just looking for an auto upgrade or maybe you have a desire for a certain make and model. Maybe your beloved truck will no longer accommodate your growing family so you are looking for something more serviceable.

As your financial institution, MCCU is looking out for your financial stability and we wish to direct your focus to the total financial ramifications of replacing your current automobile. 

An auto loan can come from your dealer or from your financial institution. Is it easier to get a car loan from your credit union or a dealership? Which is better dealer finance or financial institution finance?

Benefits of Financing Through Your Dealer

When you step onto the car lot, keep in mind that your salesperson is there to reach their sales goals for the month and the strength of the dealership depends upon their sales skills. They will play upon your emotions while negotiating sales prices. However, a smart sales person will also realize they need to meet your expectations and requirements. While negotiating within your defined monthly payment requirements, a sharp sales person will find accommodating financing to seal the deal. Often it is required to use the dealer financing program to take advantage of the offer they have made or to take advantage of rebates and special offers. 

Car dealerships are looking for the most profit they can get from an auto sale. The profit they lose in making the deal can be cushioned through their financing program. The monthly payments can accommodate your requirements, but what will be the total cost to you for the life of the loan? Will you be losing money on the total cost of your car? 

Benefits of Financing Through Your Financial Institution

MCCU can be just as creative as your sales person when it comes to taking care of your transportation and financial needs. After you have completed the requirements for financing with the dealership to obtain the special deal, you can always refinance with MCCU. 

Your shrewd sales person can make an offer that is hard to refuse to meet your transportation needs; but you can also be a savvy consumer managing your personal finances well. Car dealerships are in the business of selling cars; MCCU is in the business of serving you financially. You have a relationship with your financial institution, not the dealer. 

How to Pick the Right Option for You

Know what you are getting into by comparing your options carefully- it is ultimately your money after all. A low car payment may not be the best option in the long run.

If it is required by your car dealership to use their financial department to get the special savings offered, then you should do it. Just know that you don’t have to keep the financing through your car dealer. You can refinance with MCCU at any time to keep your loan local with those you know and who are looking out for you.

MCCU wants you to get the best deal possible. Take advantage of our experience and knowledge to make you a wise manager of your finances. It may sting to exchange your awesome truck for a family minivan but your financing options do not have to sting.


Call (816) 246-0002 today for an appointment and discover the best financing options available to preserve your personal finances. 

Apply for an Auto Loan Today!