• Last Updated:
  • Oct 25th, 2019 9:00 pm
[OP]
Newbie
Apr 14, 2012
27 posts
6 upvotes

Car Loan Kick Back

The car dealer offered us $1300 for taking a car loan at 7% instead of paying cash. He said we can paid the loan off in 6 months. So we get $900 after interest and lien. Has anyone heard of this before? Is it legal?
4 replies
Deal Addict
Nov 11, 2006
1000 posts
466 upvotes
He probably gets a larger commission or some sort of payout for sticking you on a car loan...lol. Make sure you read the fine print to ensure you can pay it off in 6 months without penalty or fees.
Jr. Member
Jul 3, 2017
116 posts
82 upvotes
Large finance reserve being paid to the dealership by the bank. They want you to wait 6 months so the bank doesn't charge the store back for the commission. Risky game for the dealer as they will lose the full reserve if you pay it out before the 6 months and there is nothing they can do to force you to compensate them.
Deal Fanatic
Apr 16, 2007
8008 posts
3305 upvotes
Financial District B…
Thackers wrote: Large finance reserve being paid to the dealership by the bank. They want you to wait 6 months so the bank doesn't charge the store back for the commission. Risky game for the dealer as they will lose the full reserve if you pay it out before the 6 months and there is nothing they can do to force you to compensate them.
Agreed, we have actually caught a few auto dealers in our dealer network doing that exact thing.
Result was charge back of the finace reserve and cancellation of the dealer agreement. Now they have one less finance option.
----------------------------Licensed Credit Bureau member, S1, FI Automotive, CCP forums most banned = x 13 and counting, guess who that is?... stomped to the curb once again

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