Car Quotes
Car Quotes through an auto dealer are usually based on the buyer’s credit history. In most cases, dealers increase the interest rate by several percentage points and share the profit with their lenders.
There’s an art to car quotes on the part of auto dealers, as this begins the “Sell” and is their first opportunity to “Markup”.
The sales manager will size up the customer and decide how vulnerable s/he may be. Dealers typically increase the rate by around 3 percentage points, which can add $1,000 to the cost of the loan.
Car finance charges cost consumers $1 billion each year, and blacks and Hispanics may be particular targets.
Nissan began offering “no markup” car loans to qualified minorities as part of a settlement with 10 black and Hispanic car buyers, who sued the company’s finance division over markups. General Motors Acceptance Corp. was also involved in a court case with a black customer from Tennessee.
Consumers can avoid car quotes markups if they call their bank and get a rate quote before they reach any terms with an auto dealer.
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