Jamie just decided to buy a vehicle for $4,500 from a dealer. He needs to finance $4,000 of that amount. What is the primary advantage and disadvantage of borrowing the money through the vehicle dealer?

The primary advantage is convenience. Most auto dealers have finance departments that will work with multiple lenders trying to find you a loan.

The primary disadvantage is cost. First, if you go elsewhere for the loan, you can use the loan amount to negotiate with the dealer on the cost of the vehicle. Second, you may be able to find a loan elsewhere for a lower rate than the dealer finance department.