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Car Financing - How it Really Works Idaho Falls ID

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.

Boise, ID
Beneficial Mortgage Co
(208) 529-3400
2217 E 17th St
Idaho Falls, ID
Idaho Title Loans
(208) 524-5680
1725 E 17th St
Idaho Falls, ID
Ez Money Pay Day Loans
(208) 522-8833
551 S Woodruff Ave
Idaho Falls, ID
Mortgage Express
(208) 552-4886
467 Constitution Way
Idaho Falls, ID
Snake River Finacial
(208) 232-0532
P.O. Box 6011
Pocatello, ID
East Idaho Credit Union
(208) 523-9069
1170 Science Center Dr
Idaho Falls, ID
Check 'n Go
(208) 528-8500
580 E 17th St
Idaho Falls, ID
Anchor Mortgage Corp
(208) 528-8600
2377 Coronado St Ste A
Idaho Falls, ID
Snake River Funding
(208) 522-0919
192 N Woodruff Ave
Idaho Falls, ID

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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