Oct 07 2008
If you financed your vehicle at the dealership, is the interest rate on the contract different from what you were told?
Another form of auto fraud is the practice of quoting a lower interest rate than the rate that is ultimately included in the contract. This tactic is intended to make the customer believe that they are getting a better interest rate than they really are. A higher interest rate by even one point could end up costing the customer hundreds, even thousands, of dollars over the life of the loan.
To avoid this practice, make sure the ANNUAL PERCENTAGE (APR) box on the contract accurately reflects what the dealer quoted you. You may also wish to ask the dealer what the Buy Rate is. The Buy Rate is the rate at which the dealer can get a vehicle financed. Any rate above the Buy Rate means that the dealer can make more on the sale. Most reputable finance companies do not allow the dealerships to impose an APR that is more than 3 percentage points over their buy rate.
