Dealer Financing

What happens every time we go to Vegas. We’ve financed more than a few new cars for blackjack dealers. Usually it goes the other way, though.

In a typical transaction, the dealer (we’re talking the car dealer now) provides financing.

The key here is that the financing gets started by the dealer itself. You don’t go to a bank first, get a stack of bills and roll on into the dealership. Instead, you go to the dealer, pick out your car, negotiate a price, then sit there at the salesperson's desk playing games on your phone while they go into some back room with a bunch of other people to ask a computer whether you qualify for a loan.

The dealer fronts the loan and then sells it off to another lender later. Or they might just play point person for the paperwork, with some lenders already waiting in the wings to back the loan. GMAC makes more money than GM Cars. That is, GM makes more cash flow as a bank lending money to their customers to buy their cars than they make from making the cars themselves.

Bottom line: Find your own financing outside of the kindly loving Fast Freddy auto dealership. It'll be way cheaper.