Kickback from the finance company - who gets it? Dealership or dealer him/herself?

[minski]

I've just made a purchase. Was verbally assured that my interest rate would remain less than 3% and ended up with >3% so am thinking of refinancing. However, I don't have too much against the dealer, mostly annoyed with the financing department. Who would get the kickback? The dealer or the dealership?

[StartingOver10]

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@minski wrote:

I've just made a purchase. Was verbally assured that my interest rate would remain less than 3% and ended up with >3% so am thinking of refinancing. However, I don't have too much against the dealer, mostly annoyed with the financing department. Who would get the kickback? The dealer or the dealership?

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The finance guy that increased the rate gets a large portion of the commission - that's why they do it. The rest goes to the individual dealership.

If you refi quickly (don't remember the days) - the finance guy and the dealership both lose out on the bonus payment/kickback from the lender.  So make sure to refi right away - not only will you get a lower rate (probably) you take away the bonus from the guy that didn't treat you right. I would say that is a win-win.

[minski]

Thank you!

Is it the dealership or the dealer who gets the rest of the kickback?

When I mentioned the increased rate to my dealer at the end of it all, he had been unaware of it and ended up speaking with "someone". He came back and told me there wasn't anything he could do so I don't hold it against him. I didn't like the guy in finance AT ALL, though, and pretty sure it was he who went back on the verbal agreement. I don't know if the dealer had told him that I'd gone in with financing at 1.99%, thus making it likely that I'm not that naive about refinancing. I've received word from Alliant that I can refinance with the same rate within the first 6 months of purchase so... 

[StartingOver10]

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@minski wrote:

Thank you!

Is it the dealership or the dealer who gets the rest of the kickback?

When I mentioned the increased rate to my dealer at the end of it all, he had been unaware of it and ended up speaking with "someone". He came back and told me there wasn't anything he could do so I don't hold it against him. I didn't like the guy in finance AT ALL, though, and pretty sure it was he who went back on the verbal agreement. I don't know if the dealer had told him that I'd gone in with financing at 1.99%, thus making it likely that I'm not that naive about refinancing. I've received word from Alliant that I can refinance with the same rate within the first 6 months of purchase so... 

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Don't wait 6 months. Get it asap so the guy you don't like doesn't get that kickback/bonus - whatever you want to call it.

I don't know if your 'dealer' was telling you the truth or if he doesn't know. I'm sure they all know that there is a bonus' given to the F&I guy and the dealership (where you purchase the car) if the rate is higher than the rate offered by the bank. Most F&I guys count on you not knowing this info.

I don't have any idea of the breakdown of the bonus - one of the car people in here may know and can elaborate. 

[fltireguy]

Refinance NOW. within 90 days, so the dealership gets charged back for any points that they may have made on the deal.....

[minski]

I can't do it right now. I just purchased yesterday so when I called NMAC, I wasn't even in their system!  I need some paperwork from them, a letter, that I have to send to Alliant, and I think I need to be in the system in order to generate that letter. lol. 

[fltireguy]

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@minski wrote:

I can't do it right now. I just purchased yesterday so when I called NMAC, I wasn't even in their system!  I need some paperwork from them, a letter, that I have to send to Alliant, and I think I need to be in the system in order to generate that letter. lol. 

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When I did my refi with NFCU, I didnt need anything fro the original lender.. just told them the amount, they approved, and I had the check the next day! That was such an easy process with them..(NFCU)

[Anonymous]

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@minski wrote:

I've just made a purchase. Was verbally assured that my interest rate would remain less than 3% and ended up with >3% so am thinking of refinancing

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respectfully.... if you were promised under 3 and you got over 3, why did you sign?