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Why is car dealer financing more costly than getting a loan from a bank?
Wiki User
∙ 10y ago
There are many reasons why car dealer financing is more costly than getting a loan from the bank. It is more costly because car dealers are usually in the business of making large amounts of money.
Wiki User
∙ 10y ago
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What is a Government-Backed Financing?
Government backed financing is financing that has the promise of the government standing behind it. It is different from private investor financing or bank backed financing.
Is Tesco Personal Finance a better option than bank financing?
It really depends on your situation if Tesco Personal Finance would be a better option than bank financing. I would say to go for the bank financing in my opinion, though.
Examples of short-term financing?
Bank loans and any other form of external financing
How does owner financing work?
Owner financing is a method of financing a house or other item without using the assistance of a realtor or broker. Be sure to use a bank that is familiar with working with individuals for financing.
Can commercial property financing be obtained online?
Commercial property financing can be obtained online from the following sources: Target Mortgages, Funding Circle, Home Loans, HDFC Bank, Torrey Pines Bank, Bank of America.
Where can one get low interest financing for a leased car?
One can get low interest financing for leasing a car either from the car dealer or the bank. The bank is likely to have lower interest rates and will accept the car as collateral for the loan.
How does the availability of consumer credit benefit the car dealer from whom you are buying the car?
Well, for starters it allows people to buy the car. Secondly, a bank contracted with the dealer - that is to say the dealer handles the financing - will pay the dealer anywhere from a $100 "flat" to up to 2% APR on the loan. They will have to pay back the difference to the bank if you pay off the the loan early. If you source your own loan, then it doesn't benifit the dealer. Since they are major sources of lending, dealers will often have cheaper sources of financing than is available to the average consumer. When this is the case, it is cheaper for you to go through the dealer regardless of what the dealer is getting paid.
What does floor plan financing involve?
The dealer is loaned money to buy the inventory from suppliers and holds the inventory in trust for the bank. As the borrower sells inventory to consumers, he pays the bank. The dealer keeps the mark-up of the retail price
If you are current on your payments can the car dealership who sold you the car repo it or is the bank that is financing the vehicle the only one who can do that?
The bank/finance company. The dealer has already been paid for the vehicle
Problem faced by bank to export financing?
which problem faced by bank to export financing
How to buy nissan juke 2011?
Find one at a dealer nearby or that is offered up for sale by an individual on an online source or local paper and bring the info to your bank, if you use a dealer they can do the financing for you.
Where can you get free information about car financing?
You can get free information about car financing from either a bank or a car dealership. You might also want to check with your insurance company. If you are buying a car from a dealer, I would talk with them first.
Which is better dealer or private car loan?
Private. I suggest getting pre-approved at your bank / credit union, and see if the dealer can beat that rate, as some dealers will arrange financing with a local bank. Private party car loan you can say it in other words personal car loan or person to person car loan where individual can get car loan without cosigner help.
Can you pay off the car at the dealership you bought it from?
The answer depends on who loaned you the money to buy the car. The answer is yes if the dealer does his own financing. I think most dealers arrange financing with a bank or loan company. If that is the case, you make you payments to them.
After signing a car contract can a dealer say the bank did not approve you?
Yes, the contract only gives the dealer the authorization to seek financing based on the terms of the signed contract. Read it closely to include the fine print. If for some reason the financing falls through the contract usually becomes null and void.
Can a vehicle be repossessed after a contract was signed for financing?
YES IT CAN. IF YOUI GO ON CLARKHOWARD.COM YOU WILL SEE FACTS ON SOMETHING CALLED A BAIL AGREEMENT. THATS WHEN A BANK SAYS THEY ARE FINANCING YOU AND YOU PUT DOWN A PAYMENT BUT THEY HAVEN'T REALLY APPROVED YO9U FOR THE LOAN YET. ITS BEST TO GO GET A CAR IN THE MORNING THAT WAY OU CAN TALK WITH SOMEONE AT THE FINANCING BANK. YOU CAN END UP OWEING THE DEALER OR THE BANK MONEY JUST FOR KEEPING THE CAR.
What are some options for tow truck financing of a medium sized vehicle?
Your best option would bee to work with a bank that you already have an established relationship with. It may also be a good idea too alow the dealer too arrange financing for you .
