I'm an absolute beginner to car loans, and I was wondering what's going on between the financing agencies and the dealers when I finance my car loan. (My questions are about car financing in the US.)
Having done a little bit of research on how the car financing works, I learned the following points about financing my car with the dealer (please correct me if any of them is wrong):
- The dealer takes my information, runs my credit, tries to find a loan from a financing agency (bank, credit union, etc.), and then gives me the deal they get with a little extra interest that they take for themselves.
- I pay the installments directly to the dealer.
- I won't become the owner of the car until I pay all the installments in full.
What's different about each of the 3 points above, when I finance the car loan through my bank? I'm specifically interested to know the answer to the questions below:
- Does the bank pay the full price to the dealer right at the beginning and all the installments payments are just between me and the bank without the dealer being involved?
- Will I be the official owner of the car from the beginning? If not, who will be the owner when the payments start until I fully pay all of the installments? The bank or the dealer?
Please correct me if there's anything wrong or inaccurate in my knowledge about the process, I have absolutely no background in this type of stuff.