Why do auto dealerships balk at cash transactions, but real estate companies prefer them?
In: Economics
It boils down to the fact that it’s illegal for a lender to pay a realtor to direct their clients to that lender, but it’s totally legal for a lender to pay a car dealer to direct their clients to that lender. The dealership makes more money if you finance with their preferred lender so that’s what they try to do. Your realtor, and the seller, make the same money regardless so they try to do whatever is easiest.
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