Can I use dealer financing to get the special price and then refinance for a lower interest rate?

"Is it possible to use their financing to get that special purchase price and then refinance with my bank to get the lower interest rate? I am pre-approved for a low-interest car loan but the dealership said they could knock some money off the purchase price of the car if I use their financing."

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Johnny Puckett
Answered on Jul 07, 2021
Johnny Puckett is a freelance writer and automotive expert. He has contributed content to a number of some of the largest online publications, aftermarket automotive manufacturers’ sites, and automotive informational sites. His experience in the automotive and information fields informs his writing at Jerry. His automotive interests bleed into his free time, where he enjoys modifying his favorite cars and woodworking.
“If there is no prepayment penalty associated with the dealer’s financing, then it is possible to do this. However, you should read the contract very thoroughly before signing anything.
It also wouldn’t hurt to call your bank first too, just to be sure this is still the best deal for you. You may still need a sizeable down payment for either the dealer of your bank.”
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