Auto Leasing Guide
Go to LeaseGuide.com now !

Car Financing - How it Really Works Kendallville IN

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.

AutoLoansInIndiana.com
(317) 759-7360
Indianapolis, IN
 
A and E Financial
(574) 440-6089
405 N Nappanne st
ELKHART, IN
 
Check Into Cash
(260) 599-0529
824 N Lima Rd
Kendallville, IN
 
Check 'n Go
(260) 349-9139
322 W North St
Kendallville, IN
 
American General Financial Services
(260) 347-2667
518 Professional Way
Kendallville, IN
 
cashland
(765) 356-3640
6767 W. Washington St
Indianapolis, IN
 
none
(219) 936-6710
3535 wisconsin st.
lake station, IN
 
Cash Depot Inc
(260) 349-9000
865 E North St
Kendallville, IN
 
Advance America Cash Advance
(260) 349-1280
522 Fairview Blvd
Kendallville, IN
 
Check 'n Go
(219) 397-0905
4018 Main St
East Chicago, IN
 

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...

Click here to read the rest of this article from Lease Guide