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Car Financing - How it Really Works Stony Brook NY

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.

AutoLoansInNewYork.com
(518) 300-1011
Albany, NY
 
Hans Auto Service
(845) 255-8130
251 Route 32 North
New Paltz, NY
 
New Paltz Auto Sales
(845) 255-2277
91 North Chestnut Street
New Paltz, NY
 
Wilbur Duck Cheverolet
(315) 363-4600
116 Broad Street 2
Oneida, NY
 
ALLcreditfinancialservices.com,LLC
(516) 537-8175
Northern Blvd
Roslyn, NY
 
Dependable Credit
(914) 964-9100
285 Saw Mill River Road
Yonkers, NY
 
Ireland Corners Automotive Group
(845) 255-7600
2170 Route 44 55
Gardiner, NY
 
TriState Finance
(347) 850-2592
3956 Nostrand Ave,
Brooklyn, NY
 
Midas
(845) 255-6225
242 Main Street
New Paltz, NY
 
Beek's Auto
(845) 255-7376
3128 Route 44-55
Gardiner, NY
 

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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