Why are car dealerships so pushy about financing through them?

Why do dealerships push buyers to finance through them so hard? I'm buying a new car at a dealership, and despite me saying that I already have preapproval from my credit union, they keep pushing me to finance through them. I don't get it.

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Eric Schad
Answered on Jul 14, 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.
Car dealerships want you to finance through them for two main reasons:
  • They can make money off the interest of a car loan you get through them.
  • They may get a bit of a kickback if they’re the middleman between you and another lender (commission).
Keep in mind that a dealer may have the best available offer, so don’t swear it off altogether until you see what they’re prepared to offer you.
Whether you finance through a private lender or through the dealer, every lender will require you to have car insurance on your new vehicle.
You may want to use the free car insurance comparison app, Jerry, to help you find the best car insurance rate.”
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