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Car Financing - How it Really Works Booneville MS

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.

Jackson, MS
Booneville Financial Services
(662) 728-4484
1106 N 2nd St
Booneville, MS
Magnolia Financial of Booneville Inc
(662) 728-2134
501 N 2nd St
Booneville, MS
Renasant Bank
(662) 728-5622
909 E Church St
Booneville, MS
Regions Bank
(228) 762-3422
1400 Jackson Ave
Pascagoula, MS
Renasant Bank
(662) 728-8829
1114 N 2nd St
Booneville, MS
Credit Plan of Booneville Inc
(662) 720-1075
202A N 2nd St
Booneville, MS
AAA Pawn & Title Loans
(662) 728-1226
409 N 2nd St
Booneville, MS
Renasant Bank
(662) 728-9411
213 W Market St
Booneville, MS
Title Cash
(662) 335-0031
1544 Highway 1 S
Greenville, MS

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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