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Car Financing - How it Really Works South Sioux City NE

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.
(402) 318-7244
Lincoln, NE
A-Pawn Shop
(402) 494-6229
1921 Dakota Ave
South Sioux City, NE
Ez Payday Advance Store # 49011
(402) 494-3100
1907 Dakota Ave
South Sioux City, NE
Midwest Bank
(402) 329-6221
114 W Main St
Pierce, NE
Capstone Mortgage
(402) 330-8127
13057 W Center Rd
Omaha, NE
Mid-City Auto Loans
(402) 341-5466
515 S 15th St
Omaha, NE
Siouxland Federal Credit Union
(402) 494-2073
3000 Plaza Dr
South Sioux City, NE
Check 'n Go
(402) 494-1111
200 E 13th St
South Sioux City, NE
Farm Credit Services of America
(308) 882-4201
513 Court St
Imperial, NE
Acceptance Mortgage
(402) 596-1400
11920 Burt St Ste 140
Omaha, NE

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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