Auto Leasing Guide
Go to LeaseGuide.com now !

Car Financing - How it Really Works Savage MN

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.

AutoLoansInMinnesota.Com
St. Paul, MN
 
McCarthy Auto World
(916) 420-9923
3350 129th Ave NW
Coon Rapids, MN
 
Access Bank
(952) 440-2200
7533 Egan Dr
Savage, MN
 
First State Bank and Trust
(651) 439-7072
125 New England Pl
Stillwater, MN
 
Bell Mortgage
(320) 258-2300
200 25th Ave S
Saint Cloud, MN
 
AutoLoansInMinnesota.Com
St. Paul, MN
 
Lendsmart Mortgage
(952) 345-2120
8600 Eagle Creek Pkwy
Savage, MN
 
Wells Fargo Financial
(952) 890-1380
4126 W County Road 42
Savage, MN
 
Wells Fargo Home Mortgage
(952) 953-3990
14325 Cedar Ave
Apple Valley, MN
 
Payday America
(651) 735-2292
1696 Suburban Ave
Saint Paul, MN
 

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...

Click here to read the rest of this article from Lease Guide