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Car Financing - How it Really Works Chipley FL

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.

Lydia Cladek, Inc
(888) 386-2514
108 SeaGrove Main Street
St. Augustine, FL
 
AutoLoanInFlorida.com
(850) 332-0258
Tallahassee, FL
 
Service Finance
(866) 336-1504
1956 NE 5th Avenue Suite 8
Boca Raton, FL
 
Nicholas Financial
(727) 726-0763
2454 McMullen Booth Road - Bldg C
Clearwater, FL
 
Auto Credit of Florida
(904) 387-9800
4545-3 Shirley Ave
Jacksonville, FL
 
Southern Automotive Finance - SAFCo
(800) 215-9406
2901 W Oakland Park Bulevard A23
Fort Lauderdale, FL
 
AFS Acceptance LLC
(877) 223-3254
101 NE 3rd Avenue Suite 2000
Fort Lauderdale, FL
 
United Quest Financial, Inc
(305) 576-2040
4300 Biscayne Boulevard Ste 103
Miami, FL
 
Mark One Financial LLC
(877) 862-4240
PO Box 17038
Jacksonville, FL
 
Mid-Atlantic Finance
(800) 793-9661
15500 Lightwave Drive Suite 201
Clearwater, FL
 

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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