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Car Financing - How it Really Works Boiling Springs SC

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.

American Credit Acceptance
(866) 441-0251
340 East Main Street Suite 500
Spartanburg, SC
 
American Credit Acceptance
(866) 441-0251
340 East Main Street Suite 500
Spartanburg, SC
 
Bb&t
(864) 599-8390
2701 Boiling Springs Rd
Boiling Springs, SC
 
Bank of America
(803) 255-7555
1901 Main Suit St # 900
Columbia, SC
 
Advanced
(803) 245-0006
532 Smoak St
Bamberg, SC
 
AutoLoansInSouthCarolina.com
(803) 369-8110
Columbia, SC
 
Money Store the
(864) 814-3500
8658 Asheville Hwy
Boiling Springs, SC
 
Bank of America
(843) 238-4544
1207 Highway 17 N
Surfside Beach, SC
 
Regional Finance Corporation of Sc
(843) 723-5105
567 King St
Charleston, SC
 
Conway National Bank
(843) 626-4441
1353 21st Ave N
Myrtle Beach, SC
 

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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