Manufacturer promo plans vs third-party lenders – which is cheaper?

Manufacturers often subsidise financing to sell more units. Their promo plans may feature 0% for longer terms, but the dealer fee can still be steep. Third-party lenders offer a broader range of plans and may have lower fees for certain credit tiers.

Manufacturers sometimes offset these fees with rebates on equipment, but only if you meet volume targets. When comparing, add up the dealer fee, any rebates and the effect on your margin. Don’t forget integration—some manufacturer programs integrate seamlessly with your distributor’s ordering system.

Evaluate both the cost and the administrative burden before choosing.