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Car Financing - How it Really Works Princeton WV

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.

Charleston, WV
Huntington Banks
(304) 367-2424
78 Middletown Rd
Fairmont, WV
Calhoun Banks
(304) 354-6106
Grantsville, WV
Huntington Banks
(304) 842-6955
1226 W Main St
Bridgeport, WV
National City Mortgage
(304) 599-5200
Morgantown, WV
grandparents denied
(304) 527-1924
118j st johns rd
colliers, WV
First Neighborhood Bank
(304) 927-1750
216 Market St
Spencer, WV
(304) 465-3006
605 Fayette Sq
Redstar, WV
Citizens Bank of Morgantown
(304) 292-8411
265 High St
Morgantown, WV
Capon Valley Bank
(304) 897-7177
17558 Sr 55
Lost City, WV

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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