Auto Dealers Step Up Tactics

 
The auto loans that you get at an auto dealership are not always what you would get at a bank. When you go to a bank or credit union to get an auto loan, they go over the terms and conditions and they try to get you the very best loan that they can. They know that you are more likely to get another auto loan with them if you like the terms that you are given. However, when you get an auto loan at a dealership it is handled very differently.
 
When you get an auto loan at a dealership you get the deal that normally makes the most money for the dealership. The dealership and the company offering you the auto loan make money off of your loan. Whereas a bank makes money off of you in the form of interest, the dealership and the auto loan company make their money off of the difference. Whatever money is in between the price of the car and the final price for the auto loan interest, fees, etc. – that amount is split between the two companies. Auto dealers make 52% of their profit off of auto loans and the insurance. So when they say that this is the best that they can do for you, it really is not true – they have a lot of wiggle room there that they can save you more money.
 
The newest bill from President Obama would bring all of that out into the open. They would have to disclose how much money they are making on the auto loan so that you can see it. The auto dealerships have pulled out all the stops – spending millions to advertise how this is a bad idea for the consumer. They say that by them having to disclose what they are making that it would cost consumers more to know that information. They are trying to make it seem as though they are doing consumers a favor by not telling them how much they are really being soaked.

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