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Posts: 7,225
Registered: ‎09-16-2011
Re: I Can Help, I Run A Car Dealership.
[ Edited ]

UpNComing wrote:

spengbab wrote:

I've read in a car buying book that when a dealer gets an offer back from banks, that usually they will add a little bit to the APR that was approved. E.g., if a dealer sent apps and got back an APR of 4.7%, they will say that I'm approved for an APR of 5.7% (or any amount higher than the approved APR) ... is that true?

Yes it is.  Depending on the term of the loan and the lender, the dealer can add as much as 2.5 points to a loan.

This seems so shady!!!  By the way, do you do sales on new or used vehicles, and which brand do you primarily work with?  Also, what do dealerships really think of "Cash" buyers....  if you are buying with cash, wire from bank or something similar.... is it best to keep this information to yourself until after you've haggled the price?

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