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Car Financing - How it Really Works Bellevue NE

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.

Mid-City Auto Loans
(402) 341-5466
515 S 15th St
Omaha, NE
Mid-City Auto Loans
(402) 341-5466
515 S 15th St
Omaha, NE
Commercial State Bank
(402) 291-1355
1503 Galvin Rd S
Bellevue, NE
Lending Resources
(402) 334-5772
1811 Hillcrest Dr
Bellevue, NE
Red D Cash
(402) 734-1642
7613 S 36th St
Bellevue, NE
(402) 318-7244
Lincoln, NE
Teambank Na
(402) 291-2000
1902 Harlan Dr
Bellevue, NE
Ace Cash Express
(402) 291-1459
701 Galvin Rd S Ste 116
Bellevue, NE
American National Bank
(402) 291-7500
1314 Galvin Rd S
Bellevue, NE
Advance America Cash Advance
(402) 292-5700
1103 Galvin Rd S Ste E
Bellevue, NE

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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