Dealer Financing: What's the Deal? Dealer Financing: What's the Deal? Ads that promise high trade-in allowances and low interest rates through dealer-financed loans for new cars sound great, but you should do your homework to make sure that you're really getting a good deal. Consider the following questions: Will the price of the car be higher than if you paid cash or arranged your own financing? Will you need to make a larger down payment? Will it be a short-term loan, making the monthly payments higher? Does the deal apply only to certain models? To qualify, do you have to give the dealer the manufacturer's rebate?