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Car Financing - How it Really Works Richland WA

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.

AutoLoansInWashington.com
(360) 489-6000
Olympia, WA
 
Robert Larson's Automotive Group-Robert Larson's Autohaus (Volkswagen)
(253) 474-0651
7633 S Tacoma Way
Tacoma, WA
 
Vern Sims
(360) 855-9730
23245 Basset Rd
Sedro-Woolley, WA
 
Temple Distributing Inc
(509) 773-4511
802 S. Columbus
Goldendale, WA
 
Evergreen Tire & Wheel
(253) 473-6443
3740 S Tacoma Way
Tacoma, WA
 
RapidCarLoans.net
(206) 000-0000
17th Street
Seattle, WA
 
LaMar Inc
(509) 773-3420
1590 Highway 97
Goldendale, WA
 
AABCO Transmissions and Auto Sales Inc
(509) 882-3600
716 E Wine Country Rd
Grandview, WA
 
Sedro-Woolley Auto Parts Inc
(360) 855-0341
816 Murdock Street
Sedro-Woolley, WA
 
Pat Rimmer/Les Schwab Tire Center
(360) 855-1033
PO BOX 637
Sedro-Woolley, WA
 

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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