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In-House Financing vs Bank Loans: Which Is Right for You?

Aug. 17 2025 Credit By Auto Nation Canada

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If you're shopping for a car, truck, or RV in Alberta, one of the biggest decisions you'll make is how to finance it.

Do you go through your bank? Or should you consider in-house financing through the dealership?

At Auto Nation Canada, we work with both banks and our own in-house financing team—and we're here to explain the difference so you can choose the best option for your situation.

With years of proven experience helping Alberta buyers—especially from Acheson, Spruce Grove, and surrounding Treaty 6 areas—we’ll help you compare rates, approvals, and flexibility.

🏦 What Is Bank Financing?

Bank financing means you:

  • Apply through us to major banks (like TD, RBC, etc.)

  • Approvals are solely based on credit score and income

  • Take a chance on getting approved 

✅ Pros:

  • Often lower interest rates for top credit

  • Familiar if you already bank with them

❌ Cons:

  • Less flexible with income or credit history

🏠 What Is In-House Financing?

In-house financing means the dealership (like Auto Nation Canada) manages your approval:

  • We assess your credit, income, and trade-in

  • Work with our internal team for an approval AND offer in-house options

  • Build a deal that works for your situation—not just your score

✅ Pros:

  • Fast approvals

  • More flexible for buyers with limited or no credit

  • Special options for self-employed, newcomers, and Band-funded buyers

  • We do the paperwork and help you qualify

❌ Cons:

  • May have slightly higher rates depending on credit

  • Requires a downpayment 

👉 Learn more about our financing process

🧠 Which One Is Right for You?

Go with bank financing if:

  • You have excellent credit

  • You want to compare pre-approval offers

  • You prefer managing the loan through your bank

Go with in-house financing if:

  • You’re rebuilding credit

  • You want deal directly with the dealership 

  • You value dealer guidance on term, rate, and vehicle matching

💡 Pro Tip: Many buyers start with in-house and later refinance with a bank once their credit improves.

🚗 Financing Options Available for:

✅ Ready to Get Started?

👉 Apply for financing online
 👉 Speak with our finance team

At Auto Nation Canada, we help you weigh all your options—so you get financing that fits your lifestyle, not just your credit file.