4 ms·
Car companies often have a bancing licence on their own. So they pay some interest but can create more money with these deposits. So it's cheap money for them.
by someSven 9y ago
Car companies often have a bancing licence on their own. So they pay some interest but can create more money with these deposits. So it's cheap money for them.
https://en.m.wikipedia.org/wiki/Fractional-reserve_banking https://en.m.wikipedia.org/wiki/Fractional-reserve_banking
- eru 9y agoThat's not how fractional reserve banking works..
- someSven 9y agoBank are paying for deposits, and create money wjile the deposits are the security. Simplified.
- jldugger 9y agoVirtually every car dealer partners with real banks to handle loans. They certify your car as collateral, and essentially apply on your behalf, and you walk out the door with a loan from JP Morgan, Chase, or whereevs.
- someSven 9y agoMy experince in Europe was different. I actually looked into Wikipedia for a Honda bank, and it exists. I also know Volkswagen bank.
- deleted 9y ago[deleted]