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Car Financing - How it Really Works Wailuku HI

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.

Bernstein Financial Services Inc
(808) 242-1965
2200 Main St Ste 502
Wailuku, HI
 
Gateway Financial Services
(808) 242-5463
24 N Church St Ste 312
Wailuku, HI
 
American Express
(808) 585-3200
677 Ala Moana Ste 100
Wailuku, HI
 
American General Financial Services Of Hawaii Inc
(808) 871-4888
250 Alamaha St Ste N15
Kahului, HI
 
West Maui Gold & Loan
(808) 667-7689
1000 Limahana Pl Ste H
Lahaina, HI
 
Amepnrse Financial Services Inc Alan H Kodama Senior Financial
(808) 242-9712
1498 Lower Main St Ste A3
Wailuku, HI
 
Noble Mortgage Financing
(808) 249-8025
160 N Market St Ste D
Wailuku, HI
 
Maui Finance Co
(808) 244-9143
140 N Market St Ste 201
Wailuku, HI
 
Creative Financial
(808) 891-9292
320 Ohukai Rd Ste 413
Kihei, HI
 
First Hawaiian Bank
(808) 669-5655
5095 Napilihau St Ste 103
Lahaina, HI
 

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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