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Car Financing - How it Really Works Springfield MO

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.

AutoLoansInMissouri.Com
Jefferson City, MO
 
Jack Miller Auto Credit
(816) 474-8222
3100 Burlington St
Kansas City, MO
 
Ardmore Finance
(816) 221-1393
107 E 10th St
Kansas City, MO
 
Chouteau Auto Mart 1
(816) 454-6002
3933 N Chouteau Trfy
Kansas City, MO
 
Check 'n Go
(417) 865-1200
1315 W Sunshine St
Springfield, MO
 
Kwik Auto Finance
(816) 358-7444
6632 Blue Ridge Blvd
Kansas City, MO
 
Premium Financing Specialists
(816) 627-0500
427 W 12th St
Kansas City, MO
 
Concourse Auto Sales
(314) 337-1450
7125 Manchester Ave.
Saint Louis, MO
 
Bank of America
(417) 227-6513
Springfield, MO
 
Sun Loan Company
(417) 832-9533
2727 W Kearney St
Springfield, MO
 

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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