Do car dealers get kickbacks from lenders on car loans?

Every time I've purchased a car, the salesperson is always pushy about financing. Do car dealers get kickbacks from lenders?

Answer
“Unless the dealership has its own financing department, most dealerships get a kickback, or commission, from the lending company for originating the loan.
This amount varies depending on the total amount of the car loan but is often a few hundred bucks.
Because of this kickback, you may want to cut the dealer out and go straight to the source. Just as you would with car insurance, you can shop around for car loan rates. That’s the best way to cut fees and get the most bang for your buck.
It’s recommended that you also shop for car insurance before signing on your new car. Lenders will require insurance before you can drive your new car, and they often ask for full coverage,
Full coverage can be pricey, but you can save money by comparing rates. Jerry does all the hard work for you, pulling quotes from the top 50 companies and delivering the best deals to your phone in minutes.”
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Eric Schad
Answered on Aug 10, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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