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Car Financing - How it Really Works Post Falls ID

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.

AutoLoansInIdaho.Com
Boise, ID
 
Horizon Credit Union
(208) 777-2749
565 N Vest St
Post Falls, ID
 
Cash Store the
(208) 773-2274
3134 E Mullan Ave Ste D
Post Falls, ID
 
Northwest Title Loans
(208) 773-4789
4005 W Riverbend Ave
Post Falls, ID
 
Bank of America
(208) 773-4591
Seltice Way & Henry
Post Falls, ID
 
Snake River Finacial
(208) 232-0532
P.O. Box 6011
Pocatello, ID
 
Washington Trust Bank
(208) 773-7921
1601 E Seltice Way
Post Falls, ID
 
A & H Espresso Title Loans
(208) 773-9616
3996 W Riverbend Ave
Post Falls, ID
 
Bank of America
(208) 752-1103
733 E Mullan Ave
Post Falls, ID
 
Idaho Stateline Title Loan
(208) 457-1433
3920 W 5th Ave
Post Falls, ID
 

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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