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Car Financing - How it Really Works Muskego WI

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.

Wisconsin Auto Finance
(262) 432-3308
11414 W. Park Place
Milwaukee, WI
 
thomas
(608) 782-0841
401 gillette street
la crosse, WI
 
Wisconsin Auto Finance
(262) 432-3308
11414 W. Park Place
Milwaukee, WI
 
Countrywide Home Loans
(262) 971-2820
W189S7785 Racine Ave
Muskego, WI
 
Fox Communities Credit Union
(920) 232-0102
Oshkosh, WI
 
AutoLoansInWisconsin.com
(608) 514-1500
Madison, WI
 
New Start Auto Loans - Bad Credit Auto Loans
(000) 000-0000
Lincoln Ave
Milwaukee, WI
 
Wisconsin Auto Title Loans
(608) 245-9225
3059 E Washington Ave
Madison, WI
 
Hibernia Mortgage Co Inc
(262) 241-1825
1017 W Glen Oaks Ln Ste 107
Mequon, WI
 
Farm Credit Services
(608) 269-3148
114 E Wisconsin St
Sparta, WI
 

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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