Car Financing and Leasing

Because the Internet widely publishes new vehicles invoice pricing, dealers have had to supplement their profits by exploiting the “Back-End”. What customers should realize is that modern dealerships make a good portion of their income from the financing and leasing of their new vehicles.

 

Financing is many times glossed over by the dealer during the negotiation. They want to focus on the payment and not necessarily the comprising elements like the interest rate, Money-Factor and Term.

 

It is true that car dealer's can have some of the best financing and leases available on their inventory.  However, it is necessary to know if what they are offering is really the best.  The only way to accomplish this is to verify the dealer's rate against what you can find in the open market.  Also, you must familiarize yourself with the dealer's special factory rates and sub-vented money-factors.