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Car Financing - How it Really Works Hyattsville MD

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.

Nafartari Travel
(336) 965-1840
2419 21 st Place NE
Washington , DC
 
Auto Financing
(330) 938-7935
3511 Horner Street
Savahana, GA
 
Friendly Finance
(800) 872-2877
6340 Security Bulevard Suite 200
Baltimore, MD
 
Bank of America
(301) 454-8484
3651 Bladensburg Rd
Hyattsville, MD
 
Household Finance Corporation and Subsidiary Companies
(301) 459-5440
7572 Annapolis Rd
Hyattsville, MD
 
Q 16TH IN ORDER OF CLASS
(611) 868-3579
3118 WASHINGTON MANSION (2017 iST NW) I01291
NETHERALNDS, VA
 
Car Donation
(626) 263-9264
112/a bau
mymensingh, AL
 
AutoLoansInMaryland.com
(410) 571-4914
Annapolis, MD
 
Famous Pawnbrokers
(301) 559-4000
5603 Sargent Rd
Hyattsville, MD
 
Famous Pawnbrokers
(301) 699-3300
5405 Annapolis Rd
Hyattsville, MD
 

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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