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How does the availability of consumer credit benefit the car dealer from whom you are buying the car?
Wiki User
∙ 14y ago
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.
Wiki User
∙ 14y ago
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A severe restriction occurs to the availability of consumer credit throughout the banking and finance system?
Set a limit to consumer.
How does credit affect an individual financial standing?
Your credit can raise or lower your credit score. It is what consumer credit for buying a house or car is based on.
What are consumer credit reports for?
Consumer credit reports are for those who are seeking a better deal when they are planning their financial life. Whether you are buying something, or getting a loan, they have a report for it.
What statement best describes conditions in the 1920s in the US?
An increase in the availability of credit resulted in an expansion of consumer purchasing power.
What are the Advantages of credit creation?
For the consumer, buying on credit gives you instant gratification in that you can buy what you want without having the money right then to pay for it.
What two events occurred 1920 drastically changed the typical American consumer's buying habits?
The automobile assembly line and readily available credit for buying automobiles
What two events that occurred around 1920 drastically changed the typical American consumer's buying habits?
the automoblie assembly line and readily available credit for buying automoblies
What is the benefit of using no fee credit cards?
The main benefit of using no-fee credit cards is, that if one does not often make credit card purchases, one will not have to pay for the ongoing availability of a card only infrequently used. However, interest rates on such cards tend to be higher than those offered with a fee.
Buying on credit?
Buying on credit is also called Buying on Margin
Can someone on social security benefit's cosign for a loan?
Yes, someone on the social security can be able to cosign for a loan. The person cosigning the loan however has to have good credit regardless of his availability on the social security benefit.
What where two reason for poverty in the 1920s?
Stock market crash due to buying on margin and overextention of credit to buy consumer goods.
What are consumer credit agencies?
Consumer credit agencies, also known as credit reporting agencies or credit bureaus, are organizations that collect and maintain information about individuals' credit histories and financial activities. The primary consumer credit agencies in the United States are Experian, Equifax, and TransUnion. The main functions of consumer credit agencies are: Credit Reporting: They gather information about individuals' credit accounts, payment histories, credit inquiries, and other financial data from creditors, lenders, and other sources. This information is compiled into individual credit reports, which provide a detailed record of a person's credit history. Credit Scoring: Based on the information in credit reports, the agencies use proprietary algorithms to generate credit scores, which are numerical representations of an individual's creditworthiness. Credit scores are used by lenders, landlords, employers, and others to assess the risk of extending credit or services to a particular individual. Credit Monitoring and Fraud Prevention: Credit agencies offer services to help consumers monitor their credit reports and detect any signs of identity theft or fraudulent activity. They also provide tools and resources to help consumers understand and improve their credit profiles. Consumer credit agencies are regulated by federal laws, such as the Fair Credit Reporting Act (FCRA), which govern the collection, use, and distribution of credit information. These laws aim to ensure the accuracy, fairness, and privacy of consumer credit data. It's important for individuals to regularly review their credit reports from the three major credit agencies to ensure the information is accurate and to address any errors or discrepancies. Maintaining a good credit history and credit score can have significant implications for a person's ability to obtain loans, credit cards, mortgages, and other financial products and services.
