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by toast0
1835 days ago
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The manufacturer has several reasons to push the buyer to financing. More options to adjust pricing with dealers. Repayments provide steady cash flow when sales are lagging. A auto finance business can become a general finance business (see Ally née GMAC) which may experience different business cycles than the auto business. Loan servicing provides a marketting channel and a legitimate interest in monitoring borrower credit (which could be used to tailor marketting). Promoting purchasing vehicles on credit may encourage borrowers to consider a new purchase when the loan is paid off. |
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