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Car Financing - How it Really Works Twin Falls ID

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.

AutoLoansInIdaho.Com
Boise, ID
 
Northwest Title Loans
(208) 735-1795
949 Blue Lakes Blvd
Twin Falls, ID
 
Keybank
(208) 733-3121
1665 Blue Lakes Blvd N
Twin Falls, ID
 
Northwest Farm Credit Services
(208) 732-1000
815 N College Rd
Twin Falls, ID
 
Idaho Title Loans
(208) 734-0057
536 Blue Lakes Blvd N
Twin Falls, ID
 
Snake River Finacial
(208) 232-0532
P.O. Box 6011
Pocatello, ID
 
Zions Bank
(208) 737-0240
1863 Blue Lakes Blvd N
Twin Falls, ID
 
Bank of America
(208) 733-3791
1040 Shoshone St E
Twin Falls, ID
 
Bank of America
(208) 733-3791
1040 Shoshone St E
Twin Falls, ID
 
Zions Bank
(208) 734-2988
1913 Addison Ave E
Twin Falls, ID
 

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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