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Car Financing - How it Really Works Merrimack NH

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.
(603) 513-0385
Concord, NH
Equity One Consumer Loan Co Inc
(603) 880-0102
30 Daniel Webster Hwy Ste 3
Merrimack, NH
American Heritage Mortgage Corp
(603) 880-9797
39 Simon St
Nashua, NH
(603) 893-6940
73 S Broadway
Salem, NH
Pemigewasset National Bank
(603) 536-3339
287 Highland St
Plymouth, NH
Lewis Motor Sales Of Brentwood
(603) 347-5140
317 South Rd
Brentwood, NH
Advance America Cash Advance
(603) 298-9485
267 Plainfield Rd
West Lebanon, NH
Countryside Full Spectrum Lending Division
(603) 559-5740
100 Arboretum Dr
Newington, NH
Massabesic Mortgage Corp
(603) 483-4646
54 Wood Hill Dr
Auburn, NH
Residential Mortgage
(603) 647-6644
121 Bay St
Manchester, NH

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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