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Car Financing - How it Really Works Dahlonega 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.

AutoLoansInGeorgia.Com
Atlanta, GA
 
CAR Financial Services, Inc.
(877) 570-8857
600 Westpark Drive
Peachtree City, GA
 
Georgia Auto Finance
(770) 882-2731
1170 Peachtree Street
Atlanta, GA
 
Auto Financing
(330) 938-7935
3511 Horner Street
Savahana, GA
 
Dahlonega Quick Loans
(706) 867-7909
22 N Meaders St
Dahlonega, GA
 
United Acceptance Inc.
(888) 951-9512
2400 Lake Park Dr. SE Suite 100
Smyrna, 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
 
A Tax Prep
(404) 577-3650
41 Marietta St NW
Atlanta, 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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