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The comparison that matters
A weekly or monthly repayment alone cannot establish which option costs less. Record the complete structure for each offer.
- Cash or drive-away price after any finance-linked incentive.
- Deposit, trade-in credit and actual amount financed.
- Interest rate, comparison rate and all lender or account fees.
- Term, repayment frequency, balloon and total amount repayable.
- Early payout conditions and whether extras have been added to the loan.
Where dealer finance can be useful
Dealer finance can be convenient and manufacturer campaigns can be competitive for an eligible vehicle and borrower. The trade-off is that the offer may be tied to a particular vehicle, term, balloon or promotional condition.
Why arranging finance first changes the negotiation
A conditional approval or realistic finance estimate can create a budget boundary before the showroom conversation. It also gives you a structure against which a dealer counteroffer can be compared.
Action plan
What to do next
- 1
Set a common structure
Choose the amount, deposit, term and balloon you actually want.
- 2
Collect complete figures
Ask for rate, comparison rate, fees and total repayment in writing.
- 3
Compare and verify
Confirm the vehicle price, approval conditions and settlement timing before signing.
Common questions
Frequently asked questions
Is dealer finance always more expensive?+
No. The outcome depends on the specific offer, vehicle discount, borrower, term, fees and balloon. Compare complete structures rather than the channel.
Can a zero or low rate still cost more?+
Potentially. A finance promotion can be paired with a different vehicle price, fees, a short term, a balloon or foregone discount. Compare the total transaction.
Should I tell the dealer I have finance?+
You can negotiate the vehicle price first and then compare finance structures. The important point is to keep the purchase price and cost of credit visible.
Primary sources
Check the rules and regulator guidance
Reviewed by Scott Iriks, Founder of BaseRate · Last reviewed 8 August 2026.
Policy-informed guidance summarises recurring criteria from reviewed financier documents without reproducing confidential commercial material. See the lender-matching and policy methodology.
General information only. A financier determines actual eligibility, rates, fees, terms and approval after assessment.