Many consumers assume that the dealership is where both the sale of the car and the financing take place. We cannot stress enough the importance of separating these two items!
Your car dealer is simply a proxy between you and the leasing company. Typically banks and leasing companies (which operate the same in this case) work through dealerships to represent their financing because it is the most obvious place they can find new customers.
In order to create an incentive to dealers to represent their leasing products to customers, leasing companies pay dealers a percentage of the total funding as a commission. Dealers will often receive commissions ranging from 1 – 6% of the sale price of the car just for referring the financing business. This is of course rolled into your lease payment and paid for by you.
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