Can a Honda dealer shop my car loan around to different lenders?

I went to the local Honda dealership to purchase a car. They said they worked with a variety of lenders and presented me with a list of all of them. I noticed my bank was on the list, so I went ahead and signed the paperwork. Two weeks later, I get a welcome packet from a different bank. Is this common practice for them to give the loan to just any lender?

“When you sign a finance agreement, you agree to an auto loan with whichever the dealer decides. Most of the time, they’ll try to find you the best deal, but not always.
Sometimes, the lender gives financial incentives to the dealer to use their services. That sounds like what happened in your case.
If you want to go with your preferred lender, you can ask them to refinance the loan, but only do so if your lender has a lower interest rate. As long as you’re getting a better deal, this will allow you to get the lender you want without involving the dealership.
Don’t forget that when you buy a new vehicle, you will need proper coverage. If you haven’t already found insurance, use the free Jerry app to help you find the best deal. Jerry compares rates from the top 50 companies in under a minute, delivering the best deals to your phone.”
Eric Schad
Answered on Aug 02, 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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