Do dealers really do this??? Or was i lied to?

[Anonymous]

So, i am new to the whole subprime loan world. We just bought a car, we are withing the time tonreturn and one "answer" they gave me in paperwork just has been bugging me a bit.

The car was listed on their site at 11500. We came into the dealership prequalified with prestige. They said only 2 cars qualified under prestiges terms laid out. One was a horrible car and the other was the one we currently have feom thwm (i think it was a sales tactic) 

Anyway on the paperwork they said the car was around 12500... i pointed out the website said 11500 so they switched it. Then when we went into the finance manager it said 12100. He said its because they have to pay prestige to take the loan?(or something to that effect...) is that a thing? This is the dealership prestige sent us to, seems odd... but i dont buy cars often. 

IF they do pay like that... wouldnt it be listed out instead of just have the main car price raised?

Been trying to figure it all out, but i cant find any info on this supposed amount dealerships prepay for loans.

Anyone know if this is a thing? And if so, what amount is it typically at? And is it just randomly in the price, or listed out on paperwork? Any insight is appreciated

[Anonymous]

Sorry but you were lied to. Here is what happened. The prices dealers quote involve them getting all their kickbacks. One of the kickbacks is from the lender they send your loan to. Since you came in with a loan already, one of the kickbacks they will NOT get is for a loan they initiate. Since they are counting on that money they raise the price of the car by the amount to make up for it. Dealers don’t pay lenders to take loans. It’s the other way around.

What they told you is complete bs. You can test it by saying you have a loan from a different lender. They will come up with a new reason why they need to increase the price.

Also note; you should never count on getting the price in the advertisement. Legally they have to have at least one car in stock at that price or list the VIN numbers but usually it’s the color and configuration that nobody wants. Use that price as a reference and also use something like “TrueCar” so you have a good idea of what you should be paying.

Always get a list of several dealers in your area from your lender. (Even if you have to drive a bit). Don’t be afraid to say “I don’t want to drive over there but dealer XYZ has a better price on this car”.

[Anonymous]

Yeah thats what made more sense to me as well.

This cat is the exact car that they had listed at 11498. They showed it to us and quoted our payments at more.... but i pointed out the internet price. Then they showed us everything at 11498 and thats what we agreed to.

About 2 or so hours later we were finally signing paperwork. It was past 8 and my kiddos were tired and hungry.

Does prestige require i go to that exact dealer? Or can i call and ask to go to another? Will they give me infonabout thenterms they authorized? My husband said the prestige guy told him we would need a card from 2011 or 2012. The dealership showed us two small cars that are 2017

[Anonymous]

So they say its part of an acquisition fee
Also 300 of it is a "lead fee" is it typical for people to be charged the lead fee? I thought I was being good going straight to prestige... seems its costing me 300 bucks over going to the dealership first instead...

Or is a "lead fee" an industry standard thing they charge?

[bigpoppa09]

If this is the Prestige i am thinking of they are a Sub prime lender i would have not bought a car through them.

[Anonymous]

Didnt have much of a choice. We just got discharged from bankruptcy on the 18th. It isnt even showing on reports yet



Either way... this fee stuff is from the dealership

[Anonymous]

Anyone heard of a lead fee?
Or is a "lead fee" an industry standard thing they charge?

[mavric]

Please don't buy your car this way!     Two years ago we were just discharge'  3 days later went stright to capital one  auto and got approved .

   Something like 7-10 %  rate for us.       Then you can shop for a car like a cash buyer . They tell you how much ,and what % rate up front and how much youe approved for.

     Prestige auto  is a game and will take you for a ride and it won't be a good one.    Check out Capital one auto preapproval site,  It will be a soft pull on your credit.         

[Anonymous]

It’s probably too late to back out so think of it as a learning experience.

Yes, lead fees exist. But not the way the dealership is making it sound. Banks can advertise car loans but they get most of their business from dealers sending them “leads”. That’s you. Since you went to Prestige first, the dealership will not collect a lead fee from the bank. So they are charging you the lead fee to make up for it. You absolutely, 100% do not have to pay this fee. It’s pretty standard for dealers to try to sneak things like this in. Most savvy car buyers will just say to finance manager “please don’t waste my time sneaking in your add-on fees. I don’t have time for your bs”.

 If you have not signed the paperwork, refuse to pay it. Also look in to Capital One Auto Loans.

https://www.capitalone.com/cars/

Fill out the prequalification. It’s a soft pull.

Ally is another bank that does the prequal thing. There are many others. Check this board.

[Anonymous]

How do you shop like a cash buyer? Looks like their site shows prices without tax, title doc fees etc.
Will they let us add that to the loan?