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Car Financing - How it Really Works Gautier MS

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.

Jackson, MS
Mississippi Title Loans
(601) 939-3327
2620 Highway 80 E
Pearl, MS
Lawrence County Finance Inc
(601) 587-0881
950 E Broad St
Monticello, MS
Americom Cellular
(601) 661-0888
2121 Clay St
Vicksburg, MS
United Cash Advance
(601) 664-1020
3275 Highway 80 E
Pearl, MS
Harrison Finance
(228) 871-5259
2510 Pass Rd
Gulfport, MS
Wells Fargo Financial
(662) 349-0229
775 Goodman Rd E
Southaven, MS
Trustmark Bank
(601) 736-3451
709 Main St
Columbia, MS
First Southern Bank
(601) 798-6438
1321 Highway 43 N
Picayune, MS
First South Farm Credit
(662) 843-4456
303 S Sharpe Ave
Cleveland, MS

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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