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Car Financing - How it Really Works Laurel MS

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.

Jackson, MS
Check Express
(601) 425-4100
1604 W 10th St
Laurel, MS
First South Farm Credit
(601) 428-5464
728 Sawmill Rd
Laurel, MS
(601) 649-1601
2237 Highway 15 N
Laurel, MS
Mississippi Title Loans
(601) 425-0020
104 N 16th Ave
Laurel, MS
Title Cash
(601) 425-4100
1604 W 10th St
Laurel, MS
Tower Loan of Laurel
(601) 649-2943
2305 Highway 15 N
Laurel, MS
Money Lenders Finance Company
(601) 426-7600
134 Beacon St
Laurel, MS
Southeastern Cash Advance
(601) 649-9520
609B Choctaw St
Laurel, MS
Credit Express Inc
(601) 428-1453
1104 W 1st St
Laurel, MS

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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