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Car Financing - How it Really Works Oklahoma City 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.

SMART CHOICE AUTO CREDIT
(405) 354-3519
1100 WEST MAIN
YUKON, OK
 
steffen criss
(580) 761-8733
1 miller dr
chickasha , OK
 
National Loan Investors Lp
(405) 947-6171
3030 NW Expressway St
Oklahoma City, OK
 
Check Into Cash
(405) 755-2905
10906 N Pennsylvania Ave
Oklahoma City, OK
 
Bank of America
(405) 230-4003
211 N Robinson Ave Ste S100
Oklahoma City, OK
 
SMART CHOICE AUTO CREDIT
(405) 354-3519
1100 WEST MAIN
YUKON, OK
 
Bank of Oklahoma Na
(405) 272-2048
Bank of Oklahoma Plz
Oklahoma City, OK
 
Federal Cash Advance
(405) 949-9662
3600 NW 23rd St
Oklahoma City, OK
 
Globe Capital Home Loans
(405) 605-6141
25 S Oklahoma Ave
Oklahoma City, OK
 
Advance America Cash Advance
(405) 672-4668
4428 SE 44th St
Oklahoma City, 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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