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.
Related or Semi-related Video
Finance: What is a Broker-Dealer?16 Views
Finance a la shmoop.. what is a broker-dealer? It's one of [Homeless guys holding help signs]
these guys who's making less than minimum wage right no that'd be a broke
dealer and you won't find too many of them in Lake Tahoe but yeah a broker is [Man talking about broker-dealers in Lake Tahoe]
just someone who takes a commission for selling stuff they live wherever there
are transactions in cars, boats, planes, homes and securities like stocks and
bonds so yeah it's a broker - dealer sort of like a writer-director
sexual deviant in Hollywood... Key takeaway here the broker dealer brokers
securities ie they take a commission and they deal in securities like they carry [People playing blackjack]
their own inventory of ten million shares of Amazon this week's selling
them for twelve hundred ninety dollars and 32 cents a share and buying them for
twelve hundred eighty eight dollars seventy nine cents a share making a
spread of...
equals a dollar fifty-three a share the dealer makes a spread of a buck fifty [Dealer and market transferring cash and stock]
three every time she trades a share of the Walmart killing behemoth yeah it's
sort of a Goliath slaying Goliath story there that Amazon Walmart thing we're
watching it so think about broker-dealer making money on both sides of the trades
that's the way to go if you're going to Wall Street make money no matter what [Man walking on Wall Street]