What Is Dealer Financing VS Bank Financing?

Written By: Jerry Reynolds | Jun 26, 2026 9:43:32 AM

Car Pro Show Host Jerry Reynolds: What Is Dealer Financing VS Bank Financing?

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Q: What Is Dealer Financing VS Bank Financing?

A: Dealer financing, also called Captive Arm Financing, is financing through an auto manufacturer like Ford or Toyota. Banking institutions also offer auto financing as do credit unions. While banks and credit unions may offer better rates, sometimes factory incentives offered through captive finance companies are hard to top like zero percent offers. Automakers may also offer military and first responder incentives through their captive arm financing companies. Always, do your homework and compare interest rates before visiting a dealership.

Photo: jd8/Shutterstock.com.

Jerry Reynolds

From police officer to top-selling Ford dealer to on-air car expert, Jerry helms our weekly radio show. Since selling his dealerships in 2006, Jerry has pursued his top three passions: helping consumers have a great car buying experience, supporting the military and first responders, being a loyal servant to his dog! While Jerry admits to hitting the pedal to the metal on test drives, it's all the service of finding out just how fast he can go from 0 to 60.

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"The Car Pro" Jerry Reynolds

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