Direct vs. Indirect Financing

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We offer a wide range of new and pre-owned models for you to choose from at our dealership. After you’ve found the perfect vehicle to tackle your Normal commute, the next step is to begin thinking about financing. Many shoppers choose to finance their vehicle because the end goal is to own it. Financing offers many advantages, but did you know that there are technically two main ways you can finance your vehicle?



When you’re getting ready to apply for financing, you can choose to go with direct or indirect financing. But, what is direct and indirect financing, and how do they compare? Today, the finance experts from Sam Leman Mazda will help you compare direct vs. indirect financing and touch on some advantages of direct financing and indirect financing so that you can choose the right financing option for your needs!

What Are Direct & Indirect Financing?

So, what are direct and indirect financing? Before we can go over the advantages of direct financing and indirect financing, it’s important to understand how these two financing options differ from each other. Let’s take a look at what it means when you get direct or indirect financing:

  • Direct Financing: Direct financing means that you’ve gone straight to a bank or lender to apply for an automotive loan.
  • Indirect Financing: Indirect financing occurs when you get automotive financing at a third party that then reaches out to a lender. Oftentimes, indirect financing occurs when you’re at the dealership, ready to make your purchase.

Advantages of Direct Financing & Indirect Financing

While many Springfield shoppers may have trouble deciding between indirect or direct financing, the right answer truthfully depends on your specific needs. There are advantages to both direct and indirect financing, and the right choice varies for many car-buyers. To help you with your decision, here are some advantages to both direct and indirect financing:

Direct Financing

  • You know exactly where you’re getting your auto loan.
  • You can better choose financing terms.
  • The number of potential credit inquiries is in your control.

Indirect Financing

  • The dealer/3rd party can apply for multiple loans at once.
  • Quicker and more straightforward way to get an automotive loan.
  • No need to drive all around Morton to find a lender.

Compare Direct vs. Indirect Financing Today With Sam Leman Mazda!

Because indirect financing occurs when you get financing at a dealership like Sam Leman Mazda, it’s often one of the quickest ways to get an auto loan that works with your Bloomington lifestyle and budget. On the other hand, direct financing puts you in the driver’s seat of your automotive loan. There are benefits to both, and we can help you decide between these two financing options at Sam Leman Mazda. Contact us today for a deeper comparison!


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