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Car Financing - How it Really Works Wheeling WV

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.

Charleston, WV
Progressive Bank Na
(304) 277-1100
1701 Warwood Ave
Wheeling, WV
(304) 232-5750
613 Marshall St
Wheeling, WV
First West Virginia Bancorp Inc
(304) 277-1100
1701 Warwood Ave
Wheeling, WV
Fayette County National Bank
(304) 469-2555
1554 Main St E
Oak Hill, WV
grandparents denied
(304) 527-1924
118j st johns rd
colliers, WV
Buckeye Mortgage Company
(304) 232-9100
260B Bethany Pike
Wheeling, WV
Beneficial West Virginia Inc
(304) 243-0060
83 Bridge Street Plz
Wheeling, WV
Farm Credit & Country Mortgages
(304) 372-5671
20 Freedom Rd
Ripley, WV
First Century Bank Na
(304) 325-8181
500 Federal St
Bluefield, WV

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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