It's called an "acquisition fee," and it's a fee that banks charge the dealerships just to approve a loan. The dealerships aren't supposed to pass it on to customers, but some do anyway. And because the person actually paying the fee, the customer, has no idea it exists, there's no pressure to keep the fee competitive at all. It amounts to a hush-hush interest rate jack-up that just pours on the gravy for the bank. In one case, it effectively increased the interest rate on the car loan from 18 to 25%.
3 comments:
There are plenty of scams the dealerships along with their preferred loan companies pull on the public. How about the kickbacks the loan officer gets for getting you a loan with a higher interest rate than you could get somewhere else?
Just one of the many ways these parasites make a living off the public Better off to line up your own financing and then go in a negoiate your deal.
If you need to borrow money to buy a car then you can't afford the car!
Golly,
Will not need to worry about cars soon b/c Obama will make it impossible to buy Gasoline due to his laws and incompetent behavior regarding drilling in this Country.
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