The Interest Rate Scam

The Interest Rate Scam:
When you finance your new or used car the dealer will run or pull your credit from one or all three Credit Bureaus . They will then determine what Interest Rate you qualify for (the scam). They will then use an Interest that is higher for your credit calculations. (the scam is the lender is not giving you the rate)

 You see when you finance your new or used car the dealer comes up with what is called the "Buy Rate". The Buy Rate is the lowest interest rate that you can qualify for based on your Credit Report  history and score with a particular lender. The Buy Rate is the minimum the dealer can sign you up with, but there is no limit how much over they can go. (except for usury laws)

 Scam Example, if your credit qualifies you for a 6.5% Interest and the dealer charges you 7.5% interest, the dealer has made 1% on your loan. Maybe dealer says that your credit is Ok, but there are a couple minor things on your credit report so your rate will be 8.5%. The dealer makes 2 points or 2% of your loan. If you are not prepared and have not done your homework as I have suggested and you assume what you are being told is accurate (scam).

 Now lets say you do have some credit issues, but you still qualify for financing. They give you a rate of 12.9% interest and you actually qualify for 8.9% interest....4% difference.(cha-ching, got you)

Lets look at some numbers:

 Take a look at the amount paid out over the term of the loan based on interest rate. Do you want to pay an extra $500.00, $1,000 or $ 2500 interest over the term of your loan? Now if you go to 72 months financing, which is becoming more common it will go up substantially. I work too hard for my money to be giving it away.

How To Protect Yourself From This Scam

Do your homework, get your free loan quotes from Get an Auto Loan Quote Now! Be prepared and know what kind of rate you can get from other sources. You can always take the dealer financing if you prefer. If you do not know what you credit score is we will scam you. Go to Step by Step Financing for your own good and get prepared. A few minutes can save potentially save you thousands as you can see above.

Don't fall prey to the Interest Rate scam. It is your money, you decide where it is best spent.

Car Buying Ebook and Audio Click Here!