When was the last time you bought a vehicle from an auto dealer? For many, there’s an overwhelming trepidation that’s coupled with the excitement of buying a new car. How do I know if I’m getting a good deal? Should I sell my trade on my own? Do I arrange for my own financing before I go to the dealer?
No doubt, these are all questions you ask yourself before buying a car. Some of us have friends in the car business and some have friends that used to be in the biz. But for many, the only advice you’re going to get is from the car salesperson selling you the car. The best we can ask for at the end of the day, did they create a good enough perception that I got a fair deal?
Here are a few things to consider before your next purchase. Unless your financing through your credit union, in many cases, the auto dealer can mark up the interest rate and make profit on your financing. And for some of you with sub-prime credit, did you know that in many cases the amount financed shown on your contract isn’t even the amount the targeted lender will give the auto dealer? For instance, if your contract shows you financed $15,000, it’s possible there was a 10 to 20% “discount rate” charged back to the dealer for the privilege of giving you a loan. So out of that 15K you think you paid for your vehicle, $1500 to $3000 the lender kept for themselves, in addition to the 20% plus interest rate they charge you every month.
There are essentially no laws protecting the consumer in respect to understanding:
What’s the actual value of the car you’re buying.
If the dealer made money off the financing as well.
If you have questionable credit, exactly how much the dealer got and how much did the lender keep.
In light of the mortgage crisis of 2008, there were gobs of laws enacted to protect the consumer, that some say don’t protect the consumer any more than before. Since there are more autos being purchased than homes, when is it going to be the right time to pass some legislation to protect the car buyer?
Girl, appearing to be pretty drunk, takes a swipe or two at a cop while getting hauled out of a University of Miami game. Cop responds with a pretty solid chop to the face. Was this an appropriate response from a police officer?
