Some dealers will use their own money to finance which is often referred to as in-house financing. The rates are generally higher and there are often quiet a few stipulations. This is because often the buyers have past/present credit issues, are buying odd ball cars, old cars etc that regular banks will not touch and about 100 other reasons. As Tofu explained they are generally lease agreements with $1 buyout's at the end. I would assume from what I have just read Applewood is just the financier in this situation. The only thing I'm confused about is the $7k residual but I am assuming that was set by the customer/Applewood to achieve some payment based on how much they had put up front.