It is very important to know that car dealers do not finance cars. They can arrange for the financing because they have tie-ups with many financing companies. They have the power to influence and affect your finance and the amount you pay for the financing. Dealers do business for cash Remember! Car dealers are not representatives of car manufacturers. They do independent business and are authorized franchise of one or more than one manufacturer. The manufacturer is not the owner of the dealers. Dealers generally buy car from the manufacturer taking "floor-plan" loans from bank or any finance companies. The banks charge interests on this loan and the dealer repays it by selling the car which also covers other expenses of the business. When a dealer sells a car he always does it in exchange of money that he receives either from the customer or the finance company or bank financing the customer.
Dealers do not finance cars. Dealers do not provide finances to the customers themselves. They have a list of finance companies and banks they work with to help the customers with financial aids. Dealers most of the time use the car manufacturers "captive" finance company. They simply take the customer's loan documents and pass it to the finance company with which they have tie-ups. Once all the loan formalities are done, the dealer is out of the scene. For this, car dealers get a commission or "finders fee" from the finance company or bank. This is the only why you find so much persuasion to go for loan from the car dealers.