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?
Oct 25th, 2019 7:39 pm
Oct 25th, 2019 7:40 pm
Oct 25th, 2019 7:43 pm
Oct 25th, 2019 8:23 pm
Oct 25th, 2019 9:00 pm
Agreed, we have actually caught a few auto dealers in our dealer network doing that exact thing.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.
Nov 13th, 2021 7:31 pm
Nov 13th, 2021 8:08 pm
Nov 14th, 2021 10:08 am
Nov 14th, 2021 11:19 am
Nov 14th, 2021 11:46 am
Nov 14th, 2021 2:33 pm
Since this behaviour appears to be in breach of some kind of agreement or contract, it suggests that the dealership offering it is inherently dishonest.mikeymike1 wrote: ↑ 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.
Nov 14th, 2021 5:55 pm
This. It also tells me that they’ve probably puffed up the vehicle’s price by the $1,300 value of the kickback. I bet they’d say NO if OP countered with asking them to take $1,300 off the price and he’ll take the loan so that they can have the loan commission themselves. They know the bank will claw it back when OP pays it off after a week.Jucius Maximus wrote: ↑ Since this behaviour appears to be in breach of some kind of agreement or contract, it suggests that the dealership offering it is inherently dishonest.
I would walk away from the deal. If the dealership is willing to misrepresent things to their finance partners, they're willing to be dishonest to their customers as well.
Nov 14th, 2021 7:33 pm
It is a couple hundred bucks upwards of thousands... all depending on the buyers credit & lender
Nov 15th, 2021 7:36 pm
The payout reserve is highly predicated on signed rate on the contract