Car Loan Markup Scam
New and used car buyers lose as much as one billion dollars a year because of the car loan markup scam! There is a possibility for you to experience this car finance scam if you choose to finance your car through the dealer you bought it from.
Based on your credit rating, the dealer will often add points to your car loan. Those points are then kicked back to the car dealer from the lender. This scam happens very often in the auto industry and can easily add $1000.00 or even more to the cost of the vehicle you purchase and cost many thousands more over the life of your loan.
In one of the major car manufacturer, finance companies held a study. It revealed that these companies charged this money from almost 50% of their customers. The study, which included 300,000 customers over a seven-year period, found out that these consumers overpaid as much as 200 million dollars.
You may wonder how it is that this car loan markup scam is not popular. It is because there is no law requiring car dealers to disclose this fee.
Knowledge is power, but only if used. So here’s how to avoid the inevitable whining and snivelling that will follow later when you realize you’ve ALLOWED yourself to be a victim of the car loan markup scam… To avoid the car loan markup scam, don’t let a car dealer tell what YOU have on your credit rating! The dishonest ones will lie and tell you that your credit score is low and charge a higher interest rate.
If you’re thinking of going to the car dealer blind (not knowing whats on your credit reports) then just know that the few dollars you spend on your credit reports now could save you literally hundreds of dollars of the life of your car loan. Even if you insist on getting a car loan from a car dealer you really won’t know if you’re getting a good deal or not unless you have something to compare it to.