---
title: What Is Dealer Financing VS Bank Financing?
description: Car Pro Show host and automotive expert Jerry Reynolds explains dealer vs bank financing.
---

[CarPro News | CarPro ](https://www.carpro.com/blog)

# [What Is Dealer Financing VS Bank Financing?](https://www.carpro.com/blog/what-is-dealer-financing-vs-bank-financing)

 Written by [Jerry Reynolds](https://www.carpro.com/blog/author/jerry-reynolds) | Jun 26, 2026 1:43:32 PM

 

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](https://www.shutterstock.com/g/Jinda+Noipho)/Shutterstock.com.

 

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