Why would a dealer insist on me getting a loan instead of paying cash?

"Why would a dealer insist on me getting a loan versus cash? I want to buy a new car and I have the cash to do so. But when I went to the dealership, the dealer was adamant about me getting a loan and said it would work out in my favor."

Answer
“That’s because many dealers can get a commission from lenders for providing the lender with a new car loan.
If you’re doing dealer-arranged financing, that’s usually what happens.
If you run into this issue and the dealer is all but refusing to accept cash, just walk away or ask to speak with a manager. Every business loves cash in hand, especially for high dollar items.”
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Eric Schad
Answered on Jul 28, 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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