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Thursday, April 27, 2017

How Finance Companies Offer Loans at Zero Interest?

Label/ Tag showing, "No Free meals"

Dear Friend!

A very valuable question - indeed.

As the proverb goes, there are no free meals in this world!

Especially in the finance world!

So, how does the finance company survive?

Well, the product/ car dealer passes on a part of the margin received from the product/ car manufacturer to the finance company.

Scissors cutting margin and meal plate

This small margin sacrifice by the car dealer has created a win-win situation for both - both the car dealer as well as the finance company could conclude one business transaction, adding a bit to both the top and bottom lines.

Thank you,

With Best Regards,

Anand


1 comment:

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