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Car Financing - How it Really Works Cheyenne WY

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.

Wyoming Student Loan Corporation
(307) 638-0800
1401 Airport Pkwy Ste 300
Cheyenne, WY
 
Wells Fargo Home Mortgage
(307) 632-8743
1701 Capitol Ave
Cheyenne, WY
 
Meridian Trust Federal Credit Union
(307) 635-7878
2223 Warren Ave
Cheyenne, WY
 
Advance America Cash Advance
(307) 638-0600
800 S Greeley Hwy
Cheyenne, WY
 
Quik Check
(307) 635-3200
515 E Pershing Blvd
Cheyenne, WY
 
Advance America Cash Advance
(307) 635-6600
3610 Dell Range Blvd Unit 5
Cheyenne, WY
 
Wells Fargo Financial
(307) 632-0581
1958 Dell Range Blvd
Cheyenne, WY
 
First Cheyenne Federal Credit Union
(307) 632-8111
3485 Converse Ave
Cheyenne, WY
 
B & R Check Holders
(307) 772-0020
218 S Greeley Hwy
Cheyenne, WY
 
Advanced Cash Services
(307) 634-4432
408 W 17th St
Cheyenne, WY
 

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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