dealer financing question

[LindaLu]

I've got so many questions as you may have noticed...lol...haven't bought a car in 12 years so I'm not up on car loans...  I keep reading dealer financing...do all dealer's finance?  or is that just them doing their hunting for a loan for you?  I am buying a Chrysler..(hopefully)...but it is a Chrysler Dodge Jeep dealership...Is it ieasier to get adealer financing?

[mathman]

Most dealers finance; however, I'd recommend going to your local credit union.  They usually have reasonable credit guidelines and offer the best rates (unless you have pristine credit and qualify for dealer incentive financing).

[LindaLu]

I'm planning on joining a credit union today. But will I qualify for an auto loan right away ? Also dealer financing does that mean they find you the financing or you borrow from them. ? I'm confused on that

[HoldingOntoHope]

Dealers have a network of banks, credit unions and other financial companies that they use to help finance your purchase. The finance manager at the dealer will generally pull your credit report(s) and then decide which of the companies is best able to approve you. The automotive companies also have their own finance arms which is where you see the special deals for well qualified buyers from (Nothing down and 0% interest for the next 100 years!!!)

If you know that your credit is reasonably good then you can often secure a pre-approved loan from your own bank or credit union and then challenge the dealer to beat the rate that you have in your pocket. It removes the fear factor from one part of the car buying equation.