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Car Financing - How it Really Works Weaverville NC

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.

ACE Motor Acceptance
(704) 882-7100
111 Cupped Oak Drive Suite F
Matthews, NC
 
Regional Acceptance
(252) 321-7700
1202 East Fire Tower Road
Greenville, NC
 
Pinpoint Recovery Service
(336) 932-8008
P.O. box 29
Stoneville, NC
 
Global Motorist - Used Cars Charlotte
(704) 568-7373
6625 East Independence Blvd
Charlotte, NC
 
Universal Finance
(704) 732-9110
1216 N Flint St
Lincolnton, NC
 
AutoLoansInNorthCarolina.com
(919) 746-7722
Raleigh, NC
 
Steve Strange Insurance
(828) 754-0957
710 Blowing Rock Blvd
Lenoir, NC
 
national auto sales1
(828) 441-2271
1210 1st ave sw
hickory, NC
 
Fnb Southeast
(336) 545-4600
2132 New Garden Rd
Greensboro, NC
 
Bank of America
(704) 838-4057
1616 E Broad St
Statesville, NC
 

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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