In addition, dealers are able to offer special manufacturer financing programs. Many consumers would not be able to purchase a car if it were not for the financial services offered at a dealership. For customers with credit problems, dealers often must try several financial institutions to find one willing to accept the credit contract. There is absolutely no place for discrimination on the basis of race, gender, religion, age or national origin. The vast majority of people who work in dealership finance departments treat all customers fairly and equally.
Dealers are retailers.
The lending institutions that serve as the source of funding are the wholesalers in these transactions. Because dealers buy credit in bulk and provide the retail infrastructure for serving individual customers, they get lower rates than a consumer would if dealing directly with the bank. In other words, a consumer who goes directly to a bank will also pay a retail markup. Financing is a service and there is a cost for that service. This includes personnel, office space, computers, and other expenditures.