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Car Financing - How it Really Works Fallon NV

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.

AutoLoansInNevada.Com
Carson City, NV
 
Princeton Auto Sales
(702) 924-2400
3105 E Sahara
Las Vegas, NV
 
American Auto Loan
(775) 677-2000
240 Doubleback Rd
Reno, NV
 
Beach Mortgage Inc
(775) 423-1806
4491 Reno Hwy
Fallon, NV
 
Colonial Bank
(775) 423-1484
Fallon, NV
 
Western Funding Inc.
(702) 434-1990
3915 E. Patrick Lane
Las Vegas, NV
 
Cars Vegas LLC
(702) 649-5226
2 N Losee Rd Ste H
N Las Vegas, NV
 
Advance Auto Title Loan
(702) 307-9595
2510 E Lake Mead Blvd
North Las Vegas, NV
 
City National Mortgage
(775) 423-7288
295 S Maine St
Fallon, NV
 
American Agcredit
(775) 423-3136
1440 W Williams Ave
Fallon, NV
 

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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