Selling Car Paper can provide the capital a dealer needs while helping the dealer become more profitable.
if selling car paper costs less than the income it produces and helps to improve the company's bottom line profit, increases production and enables growth. Then so what if it is more expensive than a bank loan.
Selling car paper has helped the dealer not only get some much needed capital and kept his dealership going. It has enabled him to buy more inventory which in turn helps him sell more cars.
Less expensive bank loans are worth 0 to dealerships that can't get one in the first place.
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