Does a dealer have to give you the best rate possible?
Someone told me that they're legally required to tell you the lowest rate you qualify for; Is this true? I want to finance a car, but I'm not sure if I should go with the dealer.
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Answered on Jul 01, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
“There’s nothing that legally binds a dealership or any other lender to automatically give you the lowest rate possible.
You may qualify for a lower rate, but they don’t have to tell you.
However, failing to tell you or offer the lowest rate can damage the dealer’s ability to make a sale. Therefore, giving you the best rate on a new car possible is usually in their best interest, as well as yours.
Still, the fact that they aren’t legally required to give you the lowest rate makes it all the more important to shop around.
Be sure to come prepared to each lender with the necessary documents to ensure the best rate.”
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