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Car Financing - How it Really Works Conway SC

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.

American Credit Acceptance
(866) 441-0251
340 East Main Street Suite 500
Spartanburg, SC
Freedom Finance Inc
(843) 248-3780
1020A 4th Ave
Conway, SC
Automoney of Conway
(843) 248-2860
1328 Cottage Ln
Conway, SC
National Finance Company
(843) 248-5210
2615 Main St
Conway, SC
Bencharge Credit Service of South Carolina
(843) 248-4221
610 Church St
Conway, SC
(803) 369-8110
Columbia, SC
Wells Fargo Financial Accptnce
(843) 347-2006
2262 E Highway 501
Conway, SC
Check Loans of Sc
(843) 381-8407
1818 Main St
Conway, SC
Approved Cash Advance #412
(843) 365-3956
110 El Bethel Rd
Conway, SC
Advance America Cash Advance
(843) 347-2950
2282 E Highway 501
Conway, SC

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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