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Car Financing - How it Really Works Yazoo City MS

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.

Jackson, MS
United Credit Corporation of Yazoo City
(662) 746-1031
205 S Main St
Yazoo City, MS
Cash Tyme
(662) 716-9100
1507 Jerry Clower Blvd
Yazoo City, MS
Bank of Yazoo City
(662) 746-5421
104 N Main St
Yazoo City, MS
Gulf Islands Credit
(228) 863-2046
1115 Pass Rd
Gulfport, MS
Mississippi Check Cashers
(662) 746-1313
1406 Jerry Clower Blvd
Yazoo City, MS
First South Farm Credit
(662) 746-2282
701 Haley Barbour Pkwy
Yazoo City, MS
(662) 746-0694
210 E Broadway St
Yazoo City, MS
Ca$Sh 2 Go Yazoo City
(662) 746-7700
1567 Jerry Clower Blvd
Yazoo City, MS
Renasant Bank
(662) 429-7831
180 E Commerce St
Hernando, MS

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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