Bosgoed Business Projects

Automobile Dealers Always Sell for Cash – Automobile dealers are independent business people who have a franchise record with one or more automobile manufacturers. They do not work for the company. There are no car dealerships owned by manufacturers. In some cases, large dealer dealers can have several stores in various locations. This store can sell the same brand of vehicle, or a different brand. Dealers buy cars from the manufacturer, usually with a large loan from a bank or finance company. Dealer bank charges interest on the loan. Dealer must sell cars to pay off the loan and related interest, and cover other costs of doing business.

Dealer always get cash for their car, whether it’s directly from the customer, or from financial companies or banks who lend customers money. Common misconception is that dealers give customers a discount of cash. This is not true because most traders make more money on the loan financed or lease – in the form of commissions or raising interest rates.

Arrange Dealer Financing – When dealers rent or sell cars to customers, he has a finance company or bank that he worked with customers to provide the financing they need. Most traders use a “prisoner of car manufacturers’ finance companies like GMAC, Ford Motor Credit, and American Honda Finance. Arrange dealer financing on behalf of customers – as a service. Customers can arrange their own financing if they choose.

Key Points: Dealers do not finance leases and loans. Dealer does not approve the customer for leasing or borrowing. Dealers do not lease or loan process or to receive rent payments or loans. Dealer just take the rent and loan applications and trying to arrange financing for customers.