Auto loans are a huge profit maker for car dealerships. A lot of people aren't aware just how profitable car loans are. This article will be short but very sweet. Auto lenders pay car dealers profit anything over and above what is called a buy rate. A buy rate is simply the lowest interest rate you qualify for based on several factors one of them being your credit score. If you don't know what your credit score is you can get that by clicking here. The car dealer is paid by the auto lender by convincing you to spend more on your loan. Let's say you qualify for 6.9% car loan. During negotiations you will be haggling over a lot of issues including monthly payments. When you agree to a monthly payment 9 times out of 10 it will be for a higher loan APR than you qualified for. So you negotiated a monthly payment of $450 a month for 60 months with so much down, so much for your trade-in, and so much for your old car loan payoff. The trouble is you may have negotiated a payment of $400 a month for 60 months because of the difference in interest rate on the new car's loan. So the extra $3,000 goes to the dealer as profit. Get a low rate auto loan right here. Be prepared! Click apply for auto loan |
