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Car Financing - How it Really Works Decatur AL

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.

AutoLoansInAlabama.Com
Montgomery, AL
 
McCurry Motors
(256) 713-0575
2601 d north memorial pkwy
huntsville, AL
 
Car Donation
(626) 263-9264
112/a bau
mymensingh, AL
 
Cash Mart Inc
(256) 350-7969
1814 Beltline Rd SW Ste A
Decatur, AL
 
First American Bank
(256) 351-5080
2004 6th Ave SE
Decatur, AL
 
American General Auto Finance
(800) 457-3741
2768 Eastern Blvd
Montgomery, AL
 
Fderaldebtreliefs
(801) 304-9936
3712 Philadelphia Avenue, Midvale, UT 84047
alasak, AL
 
Pioneer Credit Corporation
(256) 845-2698
2904 Greenhill Blvd NW
Ft. Payne, AL
 
Alabama Title Loans
(256) 353-6803
1411 6th Ave SW
Decatur, AL
 
New South Federal Savings Bank
(256) 353-4626
2691 Sandlin Rd SW Ste B
Decatur, AL
 

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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