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 is widely practiced 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.
A study was held in one of the major car manufacturers finance companies. It revealed that almost 50% of their customers were accessed this charge. The study, which was based on over 300,000 customers over a seven-year period, found out that these consumers overpaid as much as 200 million dollars. There is also evidence to show that the car loan markup scam is passed on to minorities more often and at a higher percentage rate.
You may wonder how it that this car loan markup scam is not widely known is. 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 sniveling 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 YOU what YOU have on your credit rating! The dishonest ones will lie and tell you that your credit score is too low and then charge you 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.