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Car Financing - How it Really Works Ardmore OK

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.

SMART CHOICE AUTO CREDIT
(405) 354-3519
1100 WEST MAIN
YUKON, OK
 
Dominion Finance
(580) 226-4467
333 W Main St Ste 110
Ardmore, OK
 
Continental Credit
(580) 226-6666
202 W Main St
Ardmore, OK
 
American National Bank
(580) 226-7738
6295 W Broadway
Ardmore, OK
 
Country Home Financial
(580) 224-9300
Ardmore, OK
 
steffen criss
(580) 761-8733
1 miller dr
chickasha , OK
 
Covington Credit
(580) 223-6800
813 W Broadway St
Ardmore, OK
 
Farm Credit
(580) 226-8859
308 S Commerce St
Ardmore, OK
 
Citifinancial
(580) 223-8902
214 W Main St
Ardmore, OK
 
Master Finance Co
(580) 226-2300
7 N Washington St Ste B
Ardmore, OK
 

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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