Kickbacks To Dealers

Auto Financing Kickbacks to dealers from lenders ( Banks, Credit Unions, etc.) on interest rates that dealers charge their customer is one of the least known most used and perhaps most costly to consumers of the auto industry's coveted secrets.

Didn't know about this rip-off did you?

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Financing Rates you Deserve

Example, when your qualifying interest rate on a loan is 6% (known as your buy rate from the lender to the dealer ), the dealer can and will attempt to charge you a higher rate. Say for instance that your credit rating from the lender the dealer calls qualifies you for a 6% rate on your car loan, the dealer gets you to sign up at 10%  ( you did't know any better, you trusted them ) Now, you'll finance your $20,000 vehicle for 60 months your payment at 6% would have been 386.65 however, you signed the purchase contract at 10% so your payment is now $429.94! 

Wow 43.29 difference a month. Who gets the extra 2597.40 ?

Your Friendly Smiling Dealer of course. Who pours you a cup of coffee pats you on the back and winks at his finance manager.

This is legal, does not have to be disclosed to you by the dealer or lender, and in some states dealers are allowed to go as high as they want!

The dealer keeps the difference between the "buy rate" and "signup" rate! This is done on both loans and leases, and without any disclosure to you. In my opinion just plain legal theft!

For the best financing on a new or used car or truck, knowledge and information is your best bet. Dealer tricks and scams (like the secret interest rate increases mentioned above, packed payments and other common rip-offs) can quickly remove any savings that you thought you were getting, so learn how to calculate your own monthly payments.

Use the Internet to get at least three finance quotes before you start negotiating with dealers.

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