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Car Financing - How it Really Works Pahrump NV

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.

AutoLoansInNevada.Com
Carson City, NV
 
Princeton Auto Sales
(702) 924-2400
3105 E Sahara
Las Vegas, NV
 
Advance Auto Title Loan
(702) 307-9595
2510 E Lake Mead Blvd
North Las Vegas, NV
 
Bank of America
(775) 751-7100
200 S Highway 160
Pahrump, NV
 
Sun Loan Company
(775) 537-6688
361 S Frontage Rd Ste 7
Pahrump, NV
 
Western Funding Inc.
(702) 434-1990
3915 E. Patrick Lane
Las Vegas, NV
 
American Auto Loan
(775) 677-2000
240 Doubleback Rd
Reno, NV
 
Cars Vegas LLC
(702) 649-5226
2 N Losee Rd Ste H
N Las Vegas, NV
 
Quick Check Exchange
(775) 727-0700
921 S Highway 160
Pahrump, NV
 
Bank of America
(775) 751-7100
Pahrump, NV
 

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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