how do car dealerships make money off my car loan?

[petronius1]

if i buy a car from a car dalership and i get it finacedi know i basically borrowing money from the bank for a aloan so how does the dealership make money off that transaction ....do they make any money off of car finacing i was just curious

[Katie W]

Generally any business which offers credit has a deal with the bank that does their financing; they only offer that bank's financing in-house, and get some small amount back from each loan. The amount varies depending on the contract, but it might be a small flat fee per loan or a percentage of the profit; generally it isn't a lot, though.

[Dave S]

The financial institution pays them a fee for acting as their agent. Much like if they actually worked for them.