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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.

Eric Schad · Updated on Jul 14, 2021

Reviewed by Shannon Martin, Licensed Insurance Agent.

“

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,

, to help you find the best car insurance rate.”

MORE:

What to Bring When Buying a Car

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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.

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