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Re: [ST] Cash purchasers
- Subject: Re: [ST] Cash purchasers
- From: Nathan Maher <nate@xxxxxxxxxx>
- Date: Mon, 09 Jul 2007 14:10:36 -0400
Sometimes the dealer does have your best interests in mind when offering
financing options (note, I said *sometimes*). Example, large car dealers
often purchase loans in bulk and can therefore get lower interest rates.
Granted, they still mark these rates up so that they quite literally
profit from your loan but in most cases these rates will be lower than if
you went to the same bank and asked for the same loan. I actually tried
this recently, the dealer could offer me a loan through my bank that was
two percentage points lower! I called my bank and they actually
explained the process to me in a pretty transparent manner, I was a bit
shocked by this. It is worth noting that I was able to beat both of them
by using a local credit union. I don't think I'll ever use anyone else
for a vehicle loan.
One other finance-related tidbit for anyone who might not know: dealers
will often not let you pay for vehicles via credit card (even if your
limit is high enough) because they pay a percentage fee. It's worth it
for them to take a down-payment via CC but not pay a fee on the whole
deal if they aren't handling the financing.
Nate
00SprintRS
Tom Fraser wrote:
> They prefer a financing arrangement as they usually get a small kickback from the company making the loan. This means that they lose out on a little income if they have a cash sale. I learned this when I used to work at a bank as a repo/collector. Hated that job and quit in less than a year.
>
> Tom
>
>
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