Approved Dealers

Meaning and Definition

Approved dealers, also known as authorized dealers, are car dealerships or sellers that have been authorized by a particular lender or finance provider to offer financing options to their customers. These dealerships have established relationships with specific lenders or finance companies and can assist customers in securing car finance through those approved channels.

Why it is important to know

Knowing which dealerships are approved by a specific lender or finance provider is important when seeking car finance. Working with an approved dealer provides advantages such as access to specialized financing programs, competitive interest rates, and a streamlined financing process. It ensures that the buyer is working with a reputable dealer who adheres to the lender's guidelines and can facilitate the financing process effectively.

Example in car finance

Let's say you are interested in financing a car through a particular lender. The lender has a list of approved dealerships on their website or can provide you with a list upon request. By purchasing a car from one of these approved dealers, you can benefit from the lender's financing options and potentially secure more favorable terms and rates compared to financing through a non-approved dealership.