just bought first car from the dealer....?

Question

OK I financed a 2002 vehicle, I put down $1500.00 to the dealer. My monthly note is $380, to pay for 36 months, it should add up to $12,057. after I pay this off, do I still owe the dealer anything? how do the dealerships get paid off my purchase?

so who does the $1500.00 down payment go to and does it count towards my financing?

Answer 1

It looks like you paid around 15000.00 (including finance fee's, dealer fee's, and taxes) for your 2002, since you have financed the car, the finance comapny owns it till you make all your remaining payments, then you own the car. You owe the dealership nothing once you have driven away after signing all the required documents.

The dealership gets its profit form the mark up they add on to the car. They probably bought your car at an auction or from a trade in. They would hev bought the car for 3-5000.00 less than you paid. No dealership makes a killing off selling cars, it is the service departments that make up most of the profit margin. If a dealership sold 500 cars a year and made an average of 1000.00 profit of each, it does add up...

Answer 2

When you get the loan, the bank pays the dealer the full amount and then you pay the money back to the bank. (In some cases, the dealer may also be the bank, but you can think of it as two departments behaving like separate companies.) And if you are not able to make the payments, it would be the bank, not the dealer, who you would have to deal with. Once you pay off the bank, you don't owe any further money to either one of them.

Answer 3

When you financed the loan the company paid the dealer in full, you shouldn't owe any more to the dealer.
So now you and the finance company own your car and the bank is out of the picture.

Answer 4

The bank pays the dealer in full in the beginning. your paying back a bank loan. You borrowed the money from the bank to pay the dealer. No, you do not owe the dealer anything when you pay off your car. Buy the way I'm not up set with your questions, it's just the nick name I used for my question.

Answer 5

they get a percentage of what you bought the car for. They also get the interest if you financed through the dealership. When I did the math it added up to $13,680. That extra you are just tossing out. Now if you saved that much for 3 years you could of paid for that car in cash, plus when you pay in cash they are more willing to get a huge discount. People get a bit money hungry when they see that cash. Then you don't have any car payments either.

Answer 6

Part of what Ihave read so far some of its true but far as dealer ships giving big discounts on cash buyers is a myth. We get paid to finance car we get are money from you or the bank.

Answer 7

the finance company pays the dealer, so you'll owe the dealership nothing when the loan is paid (the loan is only between you & the finance company)

Answer 8

to dutchfam,

Cash is no better to a dealer than finance. As a matter of fact, we make money on financing. Most dealers give bigger discounts if you finance, not pay cash.