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Car Financing - How it Really Works Crossville TN

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.

Financial Solutions (Bulk Purchase)
(615) 414-6708
2446 Durham Manor Dr
Franklin, TN
 
AutoLoansInTennessee.com
(423) 954-0066
Chattanooga, TN
 
Tennessee Auto Finance
(615) 953-9595
424 Church Street
Nashville, TN
 
First Cumberland Mortgage Llc
(931) 707-1500
186 Highway 70 E
Crossville, TN
 
World Finance Corp of Tn
(931) 484-6220
105 Cumberland Plz
Crossville, TN
 
Community Choice Financial
(615) 370-5401
5200 Maryland Way Suite 310
Brentwood, TN
 
Auto Credit of Nashville
(615) 865-1300
162 Cude Ln
Madison, TN
 
3D Financial
(931) 456-8003
1566 N Main St
Crossville, TN
 
Mortgage Investors Group
(931) 707-1314
5677 Peavine Rd
Crossville, TN
 
Mortgage Investors Group
(931) 707-1470
1307 West Ave
Crossville, TN
 

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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