Credit Union Car Loan

RedOnion

Frequent Poster
The dealers get a cut of the financing - in some case it can be more profitable than the sale of the car.
Not really any more, but it definitely used to be very profitable.
This used to be the case when banks were providing the finance; you'll still see it a bit in the finance arranged through independent dealers. But with the brands it's either white labelled at very low margin, or the car brand has set up a bank itself. It's an enabler to sell cars, with rather than commission driven.
 

24601

Frequent Poster
Not really any more, but it definitely used to be very profitable.
This used to be the case when banks were providing the finance; you'll still see it a bit in the finance arranged through independent dealers. But with the brands it's either white labelled at very low margin, or the car brand has set up a bank itself. It's an enabler to sell cars, with rather than commission driven.
Yep, the idea is to change the habits of people from changing their cars every c.5 - 7 years to every c.2 - 4 years.
 
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