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Car Financing - How it Really Works Rock Springs WY

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.

Ez Cash
(307) 362-2011
2400 Foothill Blvd Unit A
Rock Springs, WY
North Side State Bank
(307) 362-5601
601 N Front St
Rock Springs, WY
Wells Fargo Financial
(307) 382-6335
2441 Foothill Blvd Ste 1243
Rock Springs, WY
B & R Check Holders
(307) 772-0020
218 S Greeley Hwy
Cheyenne, WY
First Interstate Bank
(307) 335-6060
735 Main St
Lander, WY
Beneficial Wyoming Inc
(307) 362-4048
1363 Dewar Dr
Rock Springs, WY
(307) 362-5650
2400 Foothill Blvd
Rock Springs, WY
USA Cash Services
(307) 362-1777
1459 Dewar Dr
Rock Springs, WY
Big Horn Federal
(307) 548-2703
8 E Main St
Lovell, WY
Countrywide Home Loans
(307) 577-3660
5890 E 2nd St
Casper, WY

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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