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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.

(405) 354-3519
steffen criss
(580) 761-8733
1 miller dr
chickasha , OK
Ace Cash Express
(405) 943-0301
2505 NW 23rd St
Oklahoma City, OK
Check'n Go of Oklahoma
(405) 677-2487
4527 SE 29th St
Oklahoma City, OK
Ibc Bank
(405) 775-8057
2200 S Douglas Blvd
Oklahoma City, OK
(405) 354-3519
Cash America Pawn
(405) 685-3108
1605 SW 44th St
Oklahoma City, OK
Charter Loan Service of Moore Inc
(405) 794-2293
302 S Broadway St
Oklahoma City, OK
Western Shamrock Corp
(405) 672-2336
4531 SE 29th St
Oklahoma City, OK
Bank of the West
(405) 946-3526
5401 NW 23rd 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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