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Car Financing - How it Really Works Kalispell MT

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.

Helena, MT
High Country Mortgage
(406) 752-6962
121 1st Ave E
Kalispell, MT
Check 'n Go
(406) 257-3144
1011 US Highway 2 W
Kalispell, MT
Beneficial Montana Inc
(406) 755-0960
1085 US Highway 2 W
Kalispell, MT
Noble Finance Inc
(406) 755-3086
136 Main St
Kalispell, MT
Mile High Chrysler Jeep Dodge Kia
(406) 282-3082
3883 Harrison Avenue,
Butte, MT
Quick Check
(406) 257-6655
1013 Highway 2 E
Kalispell, MT
American Homestead Mortgage Company
(406) 756-1505
495 N Main St
Kalispell, MT
Fidelity Mortgage
(406) 752-4900
Kalispell, MT
Wells Fargo Financial
(406) 257-2307
305 1st Ave E
Kalispell, MT

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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