William Durant was the first to introduce vehicle financing shortly after the introduction of automobiles to the public. Durant saw the demand for cars becoming a mass necessity rather than a luxury for the select few. Due to this, Durant sourced cars of different budgets to sell to people of different financial backgrounds. Durant went on to begin General Motors in 1908, were he was the first to offer car finance on the cars he sold.
The first car dealers had to pay upfront for the cars they stocked from manufacturers which is why dealers cold not afford to finance cars. However in order to grow the manufacturing company and meet supply they needed regular income which meant more cars being sold. The finance root was the answer. This made cars more accessible to dealers and in turn more affordable consumers.