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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
 
SMART CHOICE AUTO CREDIT
(405) 354-3519
1100 WEST MAIN
YUKON, OK
 
Ez Money
(405) 670-4444
Oklahoma City, OK
 
Countrywide Home Loans
(405) 843-8950
1001 NW 63rd St Ste 210
Oklahoma City, OK
 
Breit Investments
(405) 232-2238
121 NW 23rd St
Oklahoma City, OK
 
steffen criss
(580) 761-8733
1 miller dr
chickasha , OK
 
Auto Source Financial
(405) 947-9500
4641 NW 10th St
Oklahoma City, OK
 
Countrywide Home Loans-Wholesale Division
(405) 843-8950
1001 NW 63rd St
Oklahoma City, OK
 
Cash Now
(405) 634-5626
4411 S Shields Blvd
Oklahoma City, OK
 
Bank of America
(405) 632-3208
2701 S Harvey Ave
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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