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Car Financing - How it Really Works Aiea HI

Car financing is frequently misunderstood by automotive consumers. Learn how dealer financing works, how to get approved, when to get a co-signer, and the importance of good credit.

C S D Financial Services
(808) 488-3918
98-025 Hekaha St Ste 4
Aiea, HI
 
CitiFinancial
(808) 486-7600
98-199 Kamehameha Hwy Ste A1
Aiea, HI
 
Cash In Advance
(808) 454-8700
880 Kamehameha Hwy Ste 2
Pearl City, HI
 
Hawaii Check Cashing
(808) 456-8011
897 Kamehameha Hwy Ste 101
Pearl City, HI
 
American General Finance
(808) 671-5664
94-1040 Waipio Uka St Ste 7
Waipahu, HI
 
Liberty Tax Service Omni Financial
(808) 486-0442
99-115 Aiea Heights Dr Ste 101
Aiea, HI
 
Wells Fargo Financial
(808) 487-3896
99-115 Aiea Heights Dr Ste 301
Aiea, HI
 
Wells Fargo Financial
(808) 455-5234
719 Kamehameha Hwy Ste C300
Pearl City, HI
 
Waipahu Town Center
(808) 677-0606
94-366 Pupupani St
Waipahu, HI
 
Allstate Insurance Company - Daniel Dennis
(808) 626-2788
95-1095 Ainamakua Dr
Mililani, HI
 

Car Financing - How it Really Works

One of the most misunderstood concepts about buying or leasing a new car is how car financing really works. Dealer financing, specifically, is misunderstood.

We'll say it again later, but the key concept to understand is that car dealers do not finance car loans and leases. However, dealers can most certainly affect how you finance and what you pay for financing.

Dealers always sell for cash
Car dealers are independent business people who have an authorized franchise with one or more car manufacturers. They do not work for the manufacturer; the manufacturer does not own the dealership.

Dealers buy cars from the manufacturer, usually with large "floor-plan" loans from a bank or finance company. The bank charges dealers interest on these loans. Dealers have to sell cars to pay off these loans with associated interest, as well as cover other expenses of running a business.

When a dealer sells or leases a car, he always receives cash, whether it's directly from the customer, or from a finance company or bank who has loaned a customer the money.

A common misconception is that dealers would rather get cash directly from a customer, bypassing the financing step. Some people mistakenly believe that dealers give cash customers a discount. This is not true. In fact, dealers typically get a commission or "finders fee" on car financing provided by banks or finance companies and therefore prefer that customers finance or lease...

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