The Car Loan Markup Scam
The car loan markup scam is costing new and used car buyers as much as
one billion dollars a year!
If you choose (its always a choice) to finance your car through the dealer you bought it from, then you may
possibly experience this car finance scam.
Based on your credit rating, the dealer will often add points to your car loan.
Those points are then kicked back to the car dealer from the lender.
This is an industry wide practice and can easily add $1000.00 or more to the cost of your vehicle and cost many
thousands more over the life of your loan.
A study done of only one of the major car manufacturers finance companies revealed that almost 50% of their
customers were accessed this charge.
This study was based on over 300,000 customers over a seven-year period and cost those consumers as much as 200
There is also evidence to show that the car loan markup scam is passed on to minorities more often and at a
higher percentage rate.
How is it that this car loan markup scam is not widely known? Simple, the car dealers are not required by law to
disclose this fee.
Knowledge is power, but only if used. So here’s how to avoid the inevitable whining and sniveling that will
follow later when you realize you've ALLOWED yourself to be a victim of the car loan markup scam...
The solution is simple: To avoid the car loan markup scam, apply
online for your car loan.
Also, don't let a car dealer tell YOU what YOU have on your credit rating! The dishonest ones will lie and tell
you that your credit score is too low and then charge you a higher interest rate.
Instead, for about $30 you can get all your credit reports from the top three major credit reporting agencies
with credit scores online. This little investment in your credit reports and FICO Score is money well spent and
will inevitably result in saving you hundreds of dollars over the life of your car loan. But be sure you
take your credit stuff with you when you go to the dealer!
If you're thinking of going to the car dealer blind (not knowing whats on your credit reports) then just know
that the few dollars you spend on your credit reports now could save you literally hundreds of dollars of the life
of your car loan.
Even if you insist on getting a car loan from a car dealer you really won't know if you're getting a good deal
or not unless you have something to compare it to.
Thats why you should take a few minutes to apply online for your car
loan to avoid the car loan markup scam.