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Car Financing - How it Really Works Casa Grande AZ

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.

Chase Custom Finance
(800) 223-5050
201 N. Central Avenue 19th Floor
Phoenix, AZ
 
Auto Title Loan Agencies of Arizona Inc
(520) 434-2274
1201 W Saint Marys Rd
Tucson, AZ
 
Presto Auto Loans Inc
(480) 610-2770
1423 S Country Club DR
Mesa, AZ
 
AAA Auto Title Loans
(480) 833-0674
1203 W University Dr
Mesa, AZ
 
Auto Title Loan Agencies
(520) 573-1200
295 W Valencia RD
Tucson, AZ
 
AutoLoansInArizona.com
(480) 630-3970
Phoenix, AZ
 
Auto Title Loans
(520) 434-2274
227 W Lincoln St
Tucson, AZ
 
Money Now Title Loans
(480) 835-6600
1130 E. Main St.
Mesa, AZ
 
Car Cash Auto Title Loans
(520) 791-2274
4373 E. 22nd Street
Tucson, AZ
 
Cellular Services
(602) 999-2175
1138 e orchid lane
gilbert, AZ
 

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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