The Motley Fool Discussion Boards

Previous Page

Automotive / Buying and Maintaining a Car


Subject:  Huge Fee Added Just For Getting A Loan Approved? Date:  10/18/1999  12:30 AM
Author:  Roadwriter Number:  3238 of 73826

This Fool was told by a Sales Mrg and his F&I guy that a car dealer often has to PAY a finance company several thousand dollars to get them to agree to finance anyone who's only a fair to poor credit risk (so-called "D" Paper) - even though the buyer is providing a substantial downpayment. Naturally, the dealer wants to pass this huge financing fee on to the buyer. Is this a scam by the dealer to get more profit? Doesn't the lender make its money through the finance charges?
Copyright 1996-2019 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us