Quote:
Originally Posted by Delgar
Financing leads to people buying cars they really can't afford. If they discipline themselves, buy cheaper, reliable, and of course used, they will have more money for other things -- cars included -- down the road.
Dealers want you to finance because they get a fee for every loan granted.
Pylon, if there's some magic reason other than making money off a loan, please explain why a dealer will sell for less if you finance through them.
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There is no magic reason. You hit the nail on the head. Dealers get a loan reserve. Also, the odds of a client adding more add-ons to the vehicle, go up exponentially.
Also, in your perfect world of everyone paying cash for cars? The nicest thing on the road, would be a Hyundai Elantra. Without a financing model, even some mid 7 figure people wouldn't have the cash on hand to buy anything else. And the used car market would be impossible to find anything in. You'd have a demand for used cars that is 10x more than today. Your business model works in a country where your choice is a red, green, black or white Lada.