How do car dealers make money on 0 financing?

+1 vote
asked Feb 4, 2018 in Buying & Selling by Prigen (12,000 points)
How do car dealers make money on 0 financing?

1 Answer

0 votes
answered Feb 10, 2018 by Shelde (49,390 points)
A car dealer makes their profit on 0% financing by charging higher prices for the car.

So while you're not directly paying any interest on the loan you really still are paying interest since the vehicles will cost more.

The financing is basically hidden in the price you pay for the car.

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