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Car Financing - How it Really Works Gulfport 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.

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Jackson, MS
 
Harrison Finance
(228) 832-6037
12100 Highway 49
Gulfport, MS
 
Regions Bank
(228) 863-4582
2200 14th St
Gulfport, MS
 
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(228) 214-4201
1423 25th Ave
Gulfport, MS
 
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(228) 863-2102
1223 C Pass Rd # C
Gulfport, MS
 
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(228) 896-6911
1315 E Pass Rd
Gulfport, MS
 
Grand Bank Mortgage Center
(228) 822-1100
16197 Landon Rd Ste D
Gulfport, MS
 
Harrison Finance
(228) 871-5259
2510 Pass Rd
Gulfport, MS
 
Money Store the
(228) 864-3408
19 Pass Rd
Gulfport, MS
 
Regions Bank
(228) 867-5450
15380 Dedeaux Rd
Gulfport, 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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