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Car Financing - How it Really Works Hutchinson KS

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.

AutoLoansInKansas.Com
Topeka, KS
 
Farm Bureau Financial Services
(913) 755-2118
508 5th St
Osawatomie, KS
 
E Z Loan Auto Sales
(316) 522-5828
2850 S Broadway St
Wichita, KS
 
Adams Marsha Insurance
(913) 755-3370
105 E Main St
Osawatomie, KS
 
Check Into Cash
(913) 294-9031
1401 Baptiste Dr
Paola, KS
 
People'S Choice Payday Loans
(913) 837-2420
601 S Metcalf Rd Ste 600
Louisburg, KS
 
First National Bank
(913) 837-5191
1201 W Amity St
Louisburg, KS
 
Dynasty Financial Group
(913) 837-8439
1007a W Amity St
Louisburg, KS
 
Prudential Financial
(913) 837-3200
908 S Broadway St
Louisburg, KS
 
Advance America Cash Advance
(913) 294-1118
301 Angela St
Paola, KS
 

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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