Auto Leasing Guide
Go to LeaseGuide.com now !

Car Financing - How it Really Works Noblesville IN

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.

AutoLoansInIndiana.com
(317) 759-7360
Indianapolis, IN
 
cashland
(765) 356-3640
6767 W. Washington St
Indianapolis, IN
 
United Acceptance
(317) 984-2580
Noblesville, IN
 
Home Loan Financing Llc
(219) 365-1129
13930 W 94th Ct
Saint John, IN
 
Pinnacle Credit Union
(260) 436-1142
4025 W Jefferson Blvd
Fort Wayne, IN
 
A and E Financial
(574) 440-6089
405 N Nappanne st
ELKHART, IN
 
none
(219) 936-6710
3535 wisconsin st.
lake station, IN
 
Drover Street Federal Credit Union
(317) 236-6290
610 Drover St
Indianapolis, IN
 
Community First Bank
(765) 768-7766
218 S Main St
Dunkirk, IN
 
Prime Rate
(765) 641-7000
722 E 8th St
Anderson, IN
 

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