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?
- Last Updated:
- Oct 25th, 2019 9:00 pm
Tags:
- SCORE
- fatducky [OP]
- Newbie
- Apr 14, 2012
- 27 posts
- 6 upvotes
4 replies
- mr_raider
- Deal Expert
- Feb 29, 2008
- 26721 posts
- 3577 upvotes
- Montreal
Used car?
- CanRulez
- 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.
- Thackers
- 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.
- mikeymike1
- Deal Fanatic
- Apr 16, 2007
- 8008 posts
- 3305 upvotes
- Financial District B…
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.
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