Auto Loan Refinance – Refinance the Car Dealerships Profits Out of Your Payments!
Most people do not realize that car dealerships can mark up the finance rate for auto loans they secured financing for. Scary thing for you is they probably did. What does this mean? It means you are paying more money, each and every month, then you need to. Car dealerships can profit in the thousands and usually do. So the choice is yours…
1) You can do nothing and continue to overpay each and every month until your vehicle is paid off.
Or
2) You can take action today and start saving yourself some potentially big money each month.
“I’m confused. How does a car dealership profit from my auto loan?” You ask. Good question. Before I answer this, I’d like to say first off, that the customers that have their finance rate marked up the most typically fall in 550 to 660 credit score range. This is usually do to the fact that those customers do not have many options to finance a vehicle outside of using the dealers resources.
Here is how it works: For this example let’s assume that you have a 625 credit score and you are at ABC Mega Car Dealership. You’ve found the vehicle you want and have completed a credit application. The Finance Manager at ABC Mega Car Dealership has submitted your application to three different lenders and has found the best rate available is through It’s All About The Money Bank. It’s All About The Money Bank has approved your auto loan at a 12% interest rate. Okay. Not too bad so far, but wait there is more. ABC Mega Car Dealership has decided they want to increase their overall profit on the deal and decides to sell you this interest rate at 14.5%. That can’t be legal! It sure is! It’s how banks incentivize car dealerships to send them more deals.
Using the example above, let’s say that you were financing $25,000 over a 72 month loan. This 2.5% markup would equate to $2,431.44 in profit that will be split by ABC Mega Car Dealership and It’s All About The Money Bank. A typical split is 75/25, meaning the car dealership would receive 75% of the $2,431.44 equalling $1,823.58 additional profit for the car dealership. Who pays the bill? You do!
If you are okay with that, then I’d suggest following option #1 from above and do nothing. If this is absolutely not okay for you, then you must follow option #2 and refinance your auto loan today. Most sources for refinancing are totally free and you will usually only pay a small $5-$65 title transfer fee to your states Motor Vehicle Division.
Where can you refinance?
1) A local Credit Union: Best for excellent credit. Typically not the best for Non-Prime or Sub-Prime credit.
2) A local Bank: Typically not the most competitive rates and terms.
3) Some Car Dealerships: Can you trust them? If this article applies to you, then they are the reason you are looking to refinance.
4) Online Source: Offers the broadest spectrum of terms and rates. Easy and very competitive. Programs for most all levels of credit.
Take advantage of auto loan refinancing today, or else you’ll be kicking yourself the next time you write that over inflated check to the bank for your vehicle payment.
Posts Related to Auto Loan Refinance - Refinance the Car Dealerships Profits Out of Your Payments!
Auto Loan Refinance – Lower Your Monthly Car Payments!
Auto loan refinancing is one of the little known, but easy ways for people to save some pretty serious money every month. It is typically an easy process and you should not ...
-
Auto Loan Refinance – Love Your Car, But Hate Your Payments?
Unless you are a masochist and enjoy inflicting the pain of financial hardship on yourself, you need to explore the option of auto loan refinancing. Consumers that actually follow through and refinance ...
-
Why Refinance Your Current Auto Loan?
Have you ever bought a car from a dealership and thought you paid too much for the financing? Well there is a good chance that you actually did. Every day unsuspecting consumers ...
-
Helpful Tips And Advice On Obtaining A Bad Credit Car Loan
If you have bad credit, getting a loan for a car or any kind of loan presents a problem. There are companies that offer bad credit car loans for people who have ...
Dottie_K said on July 18, 2010
mañana es wwe money in the bank….. un nuevo ppv que va estar buenisimo
spooneybarger said on July 19, 2010
#Credit_scores range from 300 to 850. Scores in mid 700s+ get best interest terms. Get your score when applying for a loan. Ask the lender.
Cabana C said on July 21, 2010
A bond is calculated based on the face value of the amount at maturity discounted to the present value that the bond is worth today.
In your example the bond is a 5 year bond, and is worth 100k five years from 1.1.05. Calculate the PV of the bond for years 8% . This will tell you the value of the bond originally.
Then look at what it would be worth PV based on the same variables back to present time period of today. This will tell you how much the bond has gained in interest. Which is what you are earning throughout the life of th bond.
stockmarketips said on July 22, 2010
Job bank (London): VP of Credit et Interest Rate Hybrids, Quantitative Analytics. PhD level… Quant IB Finance 18
Hollarpeters said on July 22, 2010
Consider alt text. A failure can range from trivial to devastating. How do you score/measure all the nuances and complexities?
Hollarpeters said on July 23, 2010
#Pakistan needs to score something in the range of 300 to have a prayer, the the 4 batsmen will need to add another 100-120 runs #cricket
christian koegel said on July 23, 2010
Microsoft Money .._>> Bank Of America Largest Private Bank In 2009, UBS 2nd Study Money Rate Drops Second Day in China; Central Bank Keeps Bill Rate Stable < << >>>
Ed Atun said on July 23, 2010
It is the Annual Percentage Rate. It includes your interest rate but adds any upfront fees that you pay to the lender. If you borrow $1,000 and repay $100 yearly, you have a 10% interest rate per annum. But if you had upfront fees of $100, that one-year loan cost you $200. WHich makes it 20% APR.
MiszHoneyHon said on July 26, 2010
How many life partner couples here have separate bank accounts? In my world Trisha controls everything. I get pocket money.
avisualtinkle said on August 1, 2010
I believe my credit score at this point is -167, which I'm told is in the "not good" range.
yeah_so said on August 2, 2010
I hate every bank. I feel like their all out to take your money
Raja said on August 5, 2010
they can mail u a check.call the 1 800 number and they will assist you
irenealdridge said on August 6, 2010
Job investment bank (London): Interest rate structurer/pricing/structuring, Associate…. Quant IB Finance jobs 66
Marc said on August 6, 2010
If you really paid just $15 for all 100 shares, and then sold them for $17, then your total cash in would be $17 + (100 X 4 X $0.25) = $117 and your cash out would be just $15, so your return would be:
($117 – $15) / $15 = 780%, which would make you a Wizard on Wall Street.
But if you really meant that you paid $15 a share, then your cost would be:
100 X $15 = $1,500
Your dividends earned would be:
100 X 4 X $0.25 = $100
Your sale price for the shares would be:
100 X $17 = $1,700
So the total amount of cash in would be ($100 + $1,700) = $1,800
The total amount of cash out would be $1,500.
Your total gain, and rate of return would be calculated as:
($1,800 – $1,500) / $1,500 = 20%
So your total rate of return under this scenario is 20%, which is still pretty good.