Vendor Financing

The vendor, or seller, actually funds the purchase by loaning the buyer of whatever...money.

Sound odd? Well, it's an incredibly lucrative practice for Ford and GM, for example. They'll sell a car for $32,000 and make $2,000 on the sale. But if they loan the buyer $25,000 on the purchase at, say, 8% when their cost is 3%, they're making 5% a year in interest spread. Multiply that by 5 years, and they make 2-3x more money as a bank, loaning money to car buyers...than they do actually making cars.

No, this is not the Twilight Zone.