Loans from the showroom make more sense as borrowing from other sources dries upWith loans from banks and mortgage lenders harder to come by, more and more used-car customers are turning to motor dealers for loans. Once, savvy buyers would have shopped around and used dealer finance only if it could beat the best terms offered by the purchaser’s bank, insurance company, mortgage lender or even supermarket. But now the choice is far narrower as banks and others become ever more picky about who they lend to.And even if your credit record is spotless, some lenders will say ‘no’ simply because they have loaned as much as they want to for now.While property prices were rising, many home-owners paid for cars by taking out larger mortgages. But the reverse in the value of homes throughout 2008 means that many have mortgages worth more than their bricks and mortar. To check out how your home is doing, go to and click through to the average property prices for where you live.Dealers need to find you a loan so that they can clinch a sale. And, of course, finding the finance to accompany the car gives them two chances to profit from the sale. So, if you need a car – and a loan – your dealer should be the lender to see first – rather than last.