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Car Financing - How it Really Works Council Bluffs IA

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.

Mid-City Auto Loans
(402) 341-5466
515 S 15th St
Omaha, NE
 
Citifinancial
(712) 323-7105
255 W Broadway
Council Bluffs, IA
 
Rod Kush's Cash Advance
(712) 256-3054
3558 W Broadway
Council Bluffs, IA
 
Countrywide Home Loans
(712) 325-1313
Council Bluffs, IA
 
Ace Cash Advance #9275
(712) 323-1852
3030 W Broadway
Council Bluffs, IA
 
AutoLoansInIowa.Com
Des Moines, IA
 
Mister Money USA
(712) 325-1808
3149 W Broadway
Council Bluffs, IA
 
Payday Express
(712) 322-4020
2201 W Broadway
Council Bluffs, IA
 
Bluffs Check Cashing Pawn and Loan
(712) 366-3811
501 W South Omaha Bridge R # R
Council Bluffs, IA
 
Wells Fargo Financial
(712) 328-3166
900 Woodbury Ave Ste 1
Council Bluffs, IA
 

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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