Why can dealers create 0% loans then sell them at a significant discount and remain in business? 1) There is an extremely high mark up in new cars. 2) $x at 0% rate is equivalent to $y at some other rate. 3) If dollar proceeds are the same, new car dealers don't care if they off 0% loans then sell those loans at some higher rate vs a consumer borrowing from a financial institution. O 4) All the above, individually and collectively is correct.

Why can dealers create 0% loans then sell them at a significant discount and remain in business? 1) There is an extremely high mark up in new cars. 2) $x at 0% rate is equivalent to $y at some other rate. 3) If dollar proceeds are the same, new car dealers don't care if they off 0% loans then sell those loans at some higher rate vs a consumer borrowing from a financial institution. 4) All the above, individually and collectively is correct