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Car Financing - How it Really Works Columbus GA

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.

CAR Financial Services, Inc.
(877) 570-8857
600 Westpark Drive
Peachtree City, GA
 
United Acceptance Inc.
(888) 951-9512
2400 Lake Park Dr. SE Suite 100
Smyrna, GA
 
Auto Financing
(330) 938-7935
3511 Horner Street
Savahana, GA
 
Georgia Auto Finance
(770) 882-2731
1170 Peachtree Street
Atlanta, GA
 
Mea Federal Credit Union
(706) 507-4813
2944 MacOn Rd
Columbus, GA
 
AutoLoansInGeorgia.Com
Atlanta, GA
 
Wells Fargo
(706) 267-6664
2844 Pineveiw Rd
Augusta, GA
 
Fast Cash Title
(770) 931-1771
3870 Lawrenceville Hwy Ste C-106
Lawrenceville, GA
 
Heritage Auto Finance
(770) 728-3660
25 Oakmont Lane
Covington, GA
 
Mann Finance Co
(706) 324-6411
1237 Broadway
Columbus, GA
 

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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