Let's start with what might seem like a fundamental question; why are most transactions today, and financing applications, done at the dealer?

In the US, it's mainly historical; 90% to 95% of financing transactions occur at dealerships. Another reason is the concept of spot deliveries, which might be unfamiliar to some. A spot delivery means you go to the dealership and get the car the same day. In Europe, you typically pick a car and return weeks later for delivery. In the US, you often buy a car on the lot and drive away with it the same day, so financing must be ready at that moment. Most customers don't have financing before visiting the dealership, though it's possible. Even if customers arrange financing beforehand, dealers often offer better rates. For example, if you have a 72-month loan at 6%, the dealer might offer 5.5%, saving you money. Consequently, the dealer arranges financing with one of many banks they work with. That's why financing largely happens at dealerships in the US.