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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.

Boise, ID
Washington Trust Bank
(208) 773-7921
1601 E Seltice Way
Post Falls, ID
Idaho Stateline Title Loan
(208) 457-1433
3920 W 5th Ave # A-2
Post Falls, ID
Carson Mortgage Capital
(208) 262-0790
1602 E Seltice Way Ste D
Post Falls, ID
Bank of America
(208) 773-4591
405 E Seltice Way
Post Falls, ID
Snake River Finacial
(208) 232-0532
P.O. Box 6011
Pocatello, ID
Lakeview Financial Inc
(208) 777-8420
810 N Henry St
Post Falls, ID
Post Falls Title Loans
(208) 773-1110
506 E Seltice Way
Post Falls, ID
Fast Bucks Title Loans
(208) 773-2222
3869 W Riverbend Ave
Post Falls, ID
Horizon Credit Union
(208) 777-2749
565 N Vest St
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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