> That being said, even at $0 profit it's hard for dealer financing to beat a direct auto loan, because you (the customer) get your pick of the world's financial institutions, whereas the dealer is restricted to the lenders they happen to partner with.

You're underestimating the power that the car-based financial institutions have.

For example:

> (This doesn't always apply to big institutions like Chase and Ally that have huge, separate direct and indirect auto lending arms that never talk to each other.)

Speaking of Ally bank... have you ever looked at their name before 2008?

GMAC: That's General Motors Acceptance Corporation. You're literally talking about GM's piggybank for financing deals.

Ally bank has changed a lot over the last century. But they still have tight connections with GM.

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It depends, it very, very strongly depends on the dealership, the auto-firm (ex: GM can get a very good deal with Ally bank... and Ford can get a very good deal from *Ford Motor Credit Company*, the in-house bank).

Toyota... not so much. Ford / GM? Yes. It depends.