It's been answered above, but I'll elaborate more on the why. Ignoring covid-era inventory-shortage mania, they often make very little on the car sale itself due to competition and price transparency on the internet. Sometimes as little as several hundred dollars. They have very high margins on financing: 1) they will often mark up the interest rate from the bank (called the buy rate); 2) they get origination commissions/fees from the bank for facilitating the loan; 3) they often get folks to buy all sorts of shit in the finance office, like extended warranties, tire protection packages, etc., that have huge markups. Consumers have very little idea what the fair market price of these products should be (because, unlike the car, they've done no research on these items), and the dealers won't quote you the full price, just what it does to your monthly payment, making it sound far cheaper than it is. Almost all of this can be bought third party after the sale is over and proper research can be done. Always refuse the shit they try to sell you in the finance office.