Auto Leasing Guide
Go to now !

Car Financing - How it Really Works Lancaster SC

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.

American Credit Acceptance
(866) 441-0251
340 East Main Street Suite 500
Spartanburg, SC
Fast Cash Advance
(803) 283-1084
1108 Highway 9 Byp W
Lancaster, SC
Pioneer Credit Company
(803) 285-1514
1137B Highway 9 Byp W
Lancaster, SC
Regional Finance Corp
(803) 286-8767
226 S Main St
Lancaster, SC
(803) 283-9936
600 N Main St
Lancaster, SC
(803) 369-8110
Columbia, SC
Carolina Payday Loans
(803) 286-4285
1180 Highway 9 Byp W
Lancaster, SC
First Citizens
(803) 285-7431
500 N Main St
Lancaster, SC
Carolina Title Loans
(803) 286-0945
1180 Highway 9 Byp W
Lancaster, SC
Guardian Fidelity Mortgage
(803) 313-6005
116 E Gay St
Lancaster, SC

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