Financial institutions are wholesalers.
To cover the cost of providing the retail infrastructure needed to serve individual customers, dealers are entitled to a retail markup. Many times, a car buyer can get a rate at a dealership that is as good as, if not better than, that offered directly to the consumer by other lenders. 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.