Auto Leasing Guide
Go to now !

Car Financing - How it Really Works Los Lunas NM

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.

Santa Fe, NM
Wells Fargo Bank Na
(505) 865-9618
1027 Main St SW
Los Lunas, NM
Pawn City Inc
(505) 865-8885
Los Lunas, NM
Dash For Cash
(505) 565-3911
207 Highway 314 SW
Los Lunas, NM
Sun Loan Company
(505) 565-9414
2211B Main St SE
Los Lunas, NM
Payday Loans
(505) 865-8885
3476 State Highway 47
Los Lunas, NM
Wells Fargo Financial
(505) 866-1308
2510 Main St NE Ste J
Los Lunas, NM
(505) 565-0643
3526 State Highway 47
Los Lunas, NM
Check 'n Go
(505) 565-9743
830 Main St NE
Los Lunas, NM
First Community Bank
(505) 865-7006
2421 Main St SE
Los Lunas, NM

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