Dealer Fraud

Dealerships too often “markup” their car loans interest rates which are initially approved by the banks or money lenders that the dealership goes to on behalf of car buyers who are looking for the lowest possible interest rate! For example, the “deal” may go down something like this:
You go into a dealership to buy a car and eventually you will meet the dealership’s finance manager. His job is to make as much money for the dealership as he can!
He tells you that your car loan has been “shopped around” to different lenders and the best possible interest rate for your particular car loan is, for example, let’s say, 14%. However, the lender may have actually approved your car loan at an interest rate as low as 11%! This means he effectively is “marking up” your interest rate by 3%, thus overcharging you probably thousands of dollars!
Making matters worse, the dealership and lender may end up splitting the profit they make when overcharging you! The 3% you are overcharged in this case may add thousands of dollars to the cost of your car over the course of the loan!
Possibly consider not even going through the dealership for a car loan and shop around on your own for lenders. Or, when the car dealer’s finance manager offers you his “so-called” best possible interest rate, tell him it is too high and if he cannot lower it you may have to shop for a car elsewhere!

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