PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
Do car dealerships sell your loan to other lenders?
Is it true that car dealerships sell your loan? I've heard that the reason that car dealers want you to finance with them is because they sell your loan.
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“They don’t always sell loans, but they can.
Typically, a car dealer will want you to finance through them so that they can charge you a higher APR on your
new car
. They can often prey on buyers that aren’t familiar with the financing process, as well as those with bad credit. However, there are also dealerships that offer fair rates, so don’t think all
dealers are trying to scam you
.Car dealerships can also sell your loan to get some extra money on the deal, especially if you negotiated a strong deal and got the price drastically reduced.
Dealers may also work with multiple lenders, so you might get several different offers. That might be the truth behind the rumors that you heard.”
View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies