Quote:
Originally Posted by topazsparrow
The Dealer loses nothing out this. Any dealership I've ever been to doesn't have their own financing division. It's always through banks or the manufacturer. It's possible that you're undercutting another bank, but that's about it. Most credit unions won't be able to match the financing on most new cars either. Generally the manufacturers offer insanely low interest rates in the interest of moving new cars.
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They get a kickback of sorts for each loan they finalize through the banks. If a loan isn't held to a certain term, they don't get that kickback.
Not all banks/dealers operate this way I suppose but all the one's I have friends working/worked at do.