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Car Financing - How it Really Works Laramie WY

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.

Security First Bank
(307) 721-2111
608 E Grand Ave
Laramie, WY
 
Mister Money USA
(307) 721-0485
554 N 3rd St Ste I
Laramie, WY
 
Wells Fargo Home Mortgage
(307) 672-6333
611 Coffeen Ave
Sheridan, WY
 
4 T Pawn
(307) 686-5757
102 E Lakeway Rd
Gillette, WY
 
Wells Fargo Bank Na
(307) 266-1100
3500 Cy Ave
Casper, WY
 
Choice One Mortgage
(307) 742-3036
2900 E Grand Ave
Laramie, WY
 
Pinnacle Bank
(307) 527-9690
627 Yellowstone Ave
Cody, WY
 
Western Vista Federal Credit
(307) 472-0748
732 W Collins Dr
Casper, WY
 
Citifinancial
(307) 857-3753
403 E Main St
Riverton, WY
 
Trona Valley Community Federal Credit Union
(307) 875-9800
840 Hitching Post Dr
Green River, WY
 

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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