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Car Financing - How it Really Works Enid OK

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.

steffen criss
(580) 761-8733
1 miller dr
chickasha , OK
 
Chisholm Trail Farm Credit
(580) 237-2535
805 Chisholm Trl
Enid, OK
 
Diamond Finance
(580) 237-8585
324 N Independence St
Enid, OK
 
Your Credit
(580) 234-0161
218 W Randolph Ave
Enid, OK
 
Bok Mortgage
(580) 548-8528
2308 N Van Buren St
Enid, OK
 
SMART CHOICE AUTO CREDIT
(405) 354-3519
1100 WEST MAIN
YUKON, OK
 
Security Finance
(580) 237-7528
111 S Grand St
Enid, OK
 
Advance Loan Company
(580) 233-3712
624 E Broadway Ave
Enid, OK
 
Enid Finance Company
(580) 242-1660
220 S 3rd St
Enid, OK
 
Bell Finance
(580) 237-6521
326 N Independence St
Enid, OK
 

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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