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Car Financing - How it Really Works Norman OK

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.

(405) 354-3519
Check'n Go of Oklahoma
(405) 307-9754
1233 Alameda St
Norman, OK
Circle D Pawn Inc
(405) 447-3400
153 12th Ave SE
Norman, OK
Federal Cash Advance
(405) 366-2886
Norman, OK
Commercial Federal Bank
(405) 447-3211
2122 W Main St
Norman, OK
steffen criss
(580) 761-8733
1 miller dr
chickasha , OK
(405) 364-5881
2205 W Main St Ste 4
Norman, OK
Loan Mart
(405) 217-9807
1000 Alameda St
Norman, OK
First Mortgage Company
(405) 310-6200
223 N Interstate Dr
Norman, OK
Tower Loans Inc
(405) 321-5184
325 S Porter Ave
Norman, OK

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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