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Car Financing - How it Really Works Kearney NE

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.
(402) 318-7244
Lincoln, NE
Ace Cash Advance
(308) 237-4072
228 W 42nd St
Kearney, NE
Rabo Agrifinance
(308) 234-6363
4111 4th Ave
Kearney, NE
Union Loan Inc
(308) 237-7004
18 W 23rd St
Kearney, NE
Payday USA
(308) 237-4426
Kearney, NE
Mid-City Auto Loans
(402) 341-5466
515 S 15th St
Omaha, NE
Wells Fargo Bank Na
(308) 234-1818
21 W 21st St
Kearney, NE
Union Bank & Trust Co Student Loan Office
(308) 237-7593
18 W 23rd St
Kearney, NE
(308) 234-2561
3706 2nd Ave
Kearney, NE

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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