- A buyer who lines up financing through an outside financial institution rather than through the dealer is said to have direct financing.
seek own financing, bank financing
Related Terms and Acronyms
- Negative-equity Financing — Definition,
- Financing for new car buyers who owe more on their trade-in than the car is worth.
- Open-end Lease — Definition,
- Sometimes called a finance lease. It usually offers lower payments, but carries a risk for the consumer. Under an open-end lease, the lessee must pay any difference between the residual value of the car as stated in the lease and the fair market value of the car, if lower, at the end of the lease. The lessor pays for the appraisal that sets the value. If the consumer doesn't agree with it, the consumer may pay for a binding, independent appraisal by someone agreed to by both parties.