Dealer incentive could make loan costly
Monday, April 7th, 2008Dear Terry,
I recently went into a dealer looking to buy a car. When we started talking about financing, the dealer brought me interest rates that were higher than usual.
When I confronted the dealer about how high the rates were, he asked what I would like to see. I told him in the range of between 4 percent to 5 percent.
About two minutes later, he came back to me with about what I wanted. Do the dealers get any kind of bigger kickback to finance autos at a higher rate? Or do they just not care and go with the lender they normally work with?