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Cliffnote question: Does dealers make money on bank fees?
This question has been in the back of my mind.
I went to a few different dealers...sometimes the same make.....I've seen as low as $595 and as high as $895.
Me: Why is there a difference in bank fees?
Salesperson: that is the way it is
Me: Is your bank superior?
Salesperson looked dumbfounded. Either he is lying or just clueless. I am willing to accept the higher fee if his response was just profit for the dealer. His response was made him look rather unintelligent imo
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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Do yo9u have access to a credit union? We just bought a 2014 Escape and the dealer offers financing through Ford, their own banks, and a local credit union. The best deal was 3.xx % through the credit union, no bank fee, no payments for 3 months.
I'm not familiar with this either. When I bought my current car new from the dealer roughly 2 years ago I took the dealer loan knowing full well that I was going to refi with my credit union a few days later (6.5% versus 1.99%!) I don't recall there being any bank fee or I would have gone a different route.
That's a pretty good scam. The Dealer whacks you for a "Fee", and they get a kick back from the bank for directing a loan to them as well. Don't have to make any money on the vehicle (and I am sure they do); just keep making loans!
I avoid this by worrying about the out the door price, they can break it down however they want as long as the price I get out the door is what I was looking for.
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