Auto Credit / Finance

I don't know why people are surprised to hear that a dealership's Financing and Insurance (F&I) department, or "business office," is a profit center, in some cases the biggest profit center. Everything dealerships sell you represents a profit opportunity. With few exceptions  the dealer is a middleman.

In the case of the new car itself, you can't eliminate the middleman. Most state franchise laws prohibit manufacturers from selling direct.

This is where the F&I office comes in. The Finance & Insurance (F&I) can be and often is the largest profit center in a dealership. Owners depend on their F & I office to generate an average of $300 to $1,000 or more in additional profit for each unit sold. The best commissioned sales people are about to get their shot at you, selling "Financing"    "Insurance"    "Extended Warranties"  "Accessories"   and   "Credit Life"  ((A form of single pay life insurance. A decreasing term life for the period of the loan with the lien holder as beneficiary is much less expensive))

But you can eliminate the dealer with regard to your trade-in, financing, insurance and extended warranty / service contract and credit life if you determine that it is in your best interest.

You've been sitting, waiting, looking at everything remotely interesting in the finance office. And now the wait is over. The finance manager returns and is ready to tell you the interest rate on the auto loan for your new car.

Take it and you'll more than likely be paying too much.

Here's what was happening while you sipped coffee and waited to get into the finance office.

Calling the lenders

The finance manager faxed or e-mailed your credit information to more than a dozen different lenders to find out which ones would be willing to lend to someone with your credit rating, good or bad, on this particular day and at what rate. They chose a lender by looking at how big a cut they can make on the deal. Also they used a higher figure to see what else he can add on to the overall sale when he comes in to see you.

"They're going to choose whoever gives them the largest commission," says Art Spinella, vice president of CNW Marketing/Research in Bandon, Ore.

A Salesman cut usually means bumping up the interest rate on the loan.

Will the best deal for a Salesman be the best deal for you ?

NO!!!  A Thousand Times Noooo !!!!!

If you will just check out our quotes and take them with you --" You will SAVE money."

“HOW’S YOUR CREDIT?”

Salespersons will use this against you regardless of your credit if you give them the chance.  First, this is illegal.  Your credit rating has nothing to do with the Negotiations of price or lease terms .The reason the seller asks this questions is because they believe that if they have someone who may have had some credit issues in the past, most of us have, they can use this against them and turn the negotiations away from price and use questions like “If I can get you approved do you want the car?”  This is a very powerful tool for the sellers to have, so take it away from them. Know you credit before you go.

  Get Your Free Credit Report Now!

  Why Check Your Credit Report?

To stay on top of your credit, it is essential to be aware of the contents of your credit report. Why? Because checking your report is the most convenient way to review your complete credit history, and make well-informed decisions on all your past, present and future accounts. Also, it's a good idea to monitor your report for new derogatory information and unauthorized accounts that might affect your credit.

Studies have shown that many credit files contain inaccuracies, which could influence the approval process when you apply for loans, insurance, or even a job. Often the result of simple human error, they can be caused by anything from a clerical error to a computer glitch in which your file is mixed with that of someone with a similar name.

And that's not the only reason to check your report. In the past few years, identity fraud has risen dramatically. In this form of credit fraud, a thief takes over or opens accounts in your name, running up large balances in goods or cash advances. If you don't check your credit report, it could be months before you even hear about such a situation. Fortunately, new accounts opened by a thief using your identity will appear on your credit report, alerting you to the fact that identity fraud has taken place.

That's why it's essential that you check your credit file--and monitor your credit regularly--with resources such as the credit check monitoring service which provides monthly online updates on new derogatory information that is added to your report, plus several indicators of possible fraud. And if you act right now, you can take advantage of a FREE 30-day trial of the credit check monitoring service along with a FREE credit report delivered online, at no obligation!

You can be sure that your credit will be important to the finance company or leasing company when it comes time to get approved. If you have some past credit issues, go to
Get Your Free Credit Report Now!  Even if you have had some credit issues in the past, there is no reason you should pay more for the car.

INTEREST RATE.  For the most part car sellers do not lend money.  What they do is arrange financing for a handsome profit.  Some have arrangements with lenders to buy the money to finance your car(Buy Rate), mark it up a few percentage points (Customer's Rate), and then sell it back to the lender.  Look at this example:

Look at the difference between 8% and 9.5%!  Your payment only went up by $13, but that all went to the dealer in additional profit. And at 12%, the dealer is smiling all the way to the bank!

Why let the Sellers make all that money? Click below to get the best rates in the nation for financing or re-financing. It is Free to use and they will give you everything you need, including a check to go shopping with! Click here to get the best Auto Loan rates!