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Car Financing - How it Really Works Kenner LA

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.

Crescent Bank Trust
(800) 264-4381
1000 Veterans Blvd Suite 100
Metairie, LA
 
Crescent Bank Trust
(800) 264-4381
1000 Veterans Blvd Suite 100
Metairie, LA
 
Alpha Automobile Sales, LLC
(337) 988-1960
6904 Johnston Street
Lafayette, LA
 
American Thrift & Finance Plan
(504) 461-3000
1916 Williams Blvd
Kenner, LA
 
Southern Payday
(504) 467-0079
1625 Williams Blvd
Kenner, LA
 
AutoLoansInLouisiana.Com
Baton Rouge, LA
 
home health2000
(smi) tty-1000
blvd ave
lake charles, LA
 
American Auto Finance
(337) 988-1960
6904 Johnston Street
Lafayette, LA
 
Cash Cow
(504) 464-9749
3233 Williams Blvd
Kenner, LA
 
Westside Credit Corporation
(504) 469-8300
1619 Williams Blvd
Kenner, LA
 

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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