Can a car dealership refuse outside financing?

I went to a car dealership and found a car I liked. The salesman told me that they don't accept outside financing. Can a car dealership do this?

“They sure can. Dealerships can refuse any type of financing for any reason. It’s not immoral or unethical; it’s just business.
That said, car dealers usually refuse outside financing if they’ve lowered the price enough. To make up for this discount, they want you to finance with them to recoup that money. It’s a simple break-even policy from their standpoint.
You can always walk away from the deal if it doesn’t feel right or if the term is longer than you want, like a 72-month car loan.
Always trust your instincts and don’t sign anything that seems like a poor deal.
When you do find the right deal, remember that lenders require full coverage. It’s a good idea to find car insurance before signing on the car loan, or else the dealer may require you to use their insurance, which can be quite pricey.
Just like you shopped around for the best car loan rates, be sure to shop around for the best insurance rates. Try using the free Jerry app to make comparison shopping easy. Jerry compares quotes from the top 50 providers and delivers the best deals to your phone in minutes.”
Eric Schad
Answered on Aug 10, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.

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