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Car Financing - How it Really Works Clark NJ

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.

EZ Dealer Finance
(866) 343-6714
8998 RT. 18 N. Suite 210
Old Bridge, NJ
 
TriState Finance
(347) 850-2594
67 Covington Circle
Staten Island, NY
 
Auto Finance
(908) 462-0099
1337 Stonepot Road
NJ, FL
 
Polimer Technologies inc
(862) 235-7976
77 Floyd ave
Bloomfield , NJ
 
We Buy Cars NJ
(888) 726-1103
5 John St.
Old Bridge, NJ
 
Family Auto Brokers
(908) 587-2474
1530 Roselle St
Linden, NJ
 
Ameri Car Loans
(800) 219-4354
Staten Island
New York, NY
 
Fleet Lease Network
(201) 200-1100
406 Sip Avenue
Jersey City, NJ
 
New Jersey State Auto Auction
(201) 200-1100
Jersey City, NJ
 
TriState Finance
(347) 850-2592
3956 Nostrand Ave,
Brooklyn, NY
 

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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