Outside financing questions

Samy fallo

I'm new into car dealership business. I'm a cash only car dealer so far. I'm considering outside financing to increase my sales. one of my friend told me (he's a car dealer, too) that sometimes these financing companies take part of your sales. I thought the financing companies profit only from the loan they are providing to the customers (interest). is that true. for example. I sold a car for $12,000 and the customer put down $2,000.00 and then the amount to be financed is $10,000. so the financing company give me around $8,500 (instead of $10K) and the rest is going to the financing Co through the customers payment. Can someone explain if that true or my friend doing something different. 

Featured Masters

No members found

F&I Solutions & Services Products

93%  Recommended Recom'd 29 Ratings
100%  Recommended Recom'd 11 Ratings
Company: CreditMiner
100%  Recommended Recom'd 16 Ratings
Company: Dealertrack
100%  Recommended Recom'd 9 Ratings
Company: Dealertrack

 Rate a Vendor Give feedback in three quick steps

Select a Vendor & Product
Can’t find what you're looking for?
Add a Vendor  or  Add a Product
  •  
  •  
  •