Expert Advice for Car Dealers

All Questions on Car Dealers

When should you take your car to the dealership?
Are there times it's better to take your car to the dealership rather than a private mechanic? I know that the dealership is far more expensive for repairs, so I don't take it there.
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Eric Schad
Aug 31, 2021
Why is a dealership more expensive for repairs?
Why does a dealership charge so much more for car repairs? I've been warned by numerous family members and friends never to take my car to the dealership for repairs.
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Eric Schad
Aug 31, 2021
How does a car dealership make most of its money?
Like any retailer, car dealerships have more than one way to make money. How does a car dealership make most of its money?
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Eric Schad
Aug 23, 2021
What do dealerships charge for gap insurance?
I'm looking into getting a new car. I want to add gap insurance to my car loan. How much does gap insurance normally cost at a dealership?
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Emily Maracle
Aug 16, 2021
Does a dealer still need to run my credit if I got preapproval for a loan?
I got preapproval for a car loan from my credit union. When I went to the dealer, they insisted that I undergo a credit check before buying a car. Do I have to submit to this if I already have financing?
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Eric Schad
Aug 12, 2021
Do I actually need to wait nine months to refinance a vehicle?
I got a rebate on my new Chevy Malibu for $1,500. The only stipulation was that I have to get financing and wait nine months for refinancing. Does this sound right? Do I actually have to wait to refinance?
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Eric Schad
Aug 12, 2021
Can you negotiate the APR on a new car?
I have to finance my new car, but I want to get the lowest rate possible. Can you negotiate the APR on a new car?
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Eric Schad
Aug 12, 2021
Do I have more negotiating power if I get my own financing?
I have a great relationship with my credit union and I want to use them for financing a car. However, I also want to get the best deal. Is it true that I'll get more negotiating power if I bring my own financing preapproval?
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Eric Schad
Aug 12, 2021
Should I go for low financing or a discounted price on a Honda Accord?
I'm buying a Honda Accord from a dealership. I can choose either 0.9% financing for 60 months or a discounted price by $2,500. If I choose the discount, my interest rate from my credit union will be 3.25%. The normal price of the Accord is $26,970. Should I choose low financing rates or a discounted price?
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Eric Schad
Aug 10, 2021
Where's the best place to secure financing for a used car?
I want to buy a used car for about $20,000. Where's the best place to find financing for the vehicle?
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Eric Schad
Aug 10, 2021
What should I do if my financing was denied at the dealership?
I took possession of a new car after signing the paperwork for the loan. A few days later, the dealer said the lender denied my financing. What do I do now?
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Eric Schad
Aug 10, 2021
Can you finance a car if you don't have a driver's license?
I'm a late bloomer when it comes to getting my driver's license. I'm finally getting it in a few months at the ripe old age of 27. I want to buy a car, or at least start shopping before I get my license. Can you finance a car if you don't have a driver's license?
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Eric Schad
Aug 10, 2021
What are the main differences between bank financing and dealer financing for a car loan?
I keep hearing conflicting stories about whether bank financing or dealership financing is better for the car loan. In actuality, I don't even know the difference. What are the differences between dealership and bank financing?
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Eric Schad
Aug 10, 2021
Will a car dealer always verify your employment?
I've been unemployed for about a year due to COVID, but I should be starting a new job making $95,000 per year soon. I need a car to get to my job. I'm worried that the dealer will want to verify my employment because I haven't started yet and I lied on my loan application that I had started. Will a car dealer verify my employment?
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Eric Schad
Aug 20, 2021
Can car dealers force loan insurance on a car loan?
I went to a dealer to shop for a car and planned on financing through them. When I looked through the paperwork, I noticed a $900 charge for loan insurance. The salesman told me that this was a requirement to get the promo APR. Can car dealers force this loan insurance on you?
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Eric Schad
Aug 10, 2021
Should I opt for car incentives and rebates or a lower interest rate?
"I'm shopping for a car and in quite a conundrum. My credit union has offered me a rate of 1.7% for 48 months. On the other hand, the dealer has offered $3,500 off the price of the car if I accept a 5.7% loan for 48 months. The amount I need to finance without the $3,500 off is $31,500. Should I go for the incentives or the lower interest rate?"
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Eric Schad
Aug 10, 2021
Can a car dealership refuse outside financing?
I went to a car dealership and found a car I liked. The salesman told me that they don't accept outside financing. Can a car dealership do this?
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Eric Schad
Aug 10, 2021
How do I know if a car dealer is giving me the best loan rate possible?
I was buying a car for the first time. The dealer reassured me that financing through them was the best way to go. I signed a deal for the loan at 9% APR, not knowing if that was a good rate or not. For future knowledge, how do I know if the car dealer is giving me the best car loan rate?
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Eric Schad
Aug 10, 2021
Are there any drawbacks to refinancing after I get dealer incentives from a car loan?
The salesperson at the dealership is willing to knock $2,000 off the price of a Honda Accord if I finance through them. She told me that I can refinance after four months. Are there any drawbacks to getting these incentives on a car loan and then refinancing?
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Eric Schad
Aug 10, 2021
Who is affected if I pay my car loan off early?
I financed with a dealership to get incentives on a new car, but I have the money to pay off the loan. Because they've been awesome to work with, I don't want to negatively impact them by paying the car off early. Who is affected if I pay my car loan off early?
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Eric Schad
Aug 10, 2021
Is there a disadvantage to paying off a car loan on the first month to get promotional incentives?
I noticed that if I finance a new car through the dealer, I stand to earn about $2,000 in incentives and rebates. I have the cash to pay for the car. Are there any downsides to getting this financing for the incentives and then paying off the balance after a month?
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Eric Schad
Aug 10, 2021
Is financing a car through a bank always cheaper than through a dealer?
My father told me that I should never finance through the dealer, as they add fees and charges that banks don't. However, I've heard conflicting stories. Is financing through a bank always cheaper than the dealer?
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Eric Schad
Aug 10, 2021
What are the pros and cons of getting financing from a dealership?
I'm a first-time car buyer. I've been told that getting a loan at the dealership is easy, but dealers only offer loans where they make the most money. I'm not sure what to do. What are the pros and cons of dealer financing?
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Eric Schad
Aug 10, 2021
Do you get a better car loan rate from the bank or the dealer?
I've never purchased a car before, but I need to secure financing to buy the vehicle I want. Do you get a better car loan rate from the bank or the dealer?
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Eric Schad
Aug 10, 2021
Do car dealers get kickbacks from lenders on car loans?
Every time I've purchased a car, the salesperson is always pushy about financing. Do car dealers get kickbacks from lenders?
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Eric Schad
Aug 10, 2021
What is a dealer financing fee?
I'm going to buy a car at a local dealer. When I looked at the paperwork, I noticed a dealer financing fee for $850. The dealer said that the fee was industry standard. What is a dealer financing fee?
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Eric Schad
Aug 10, 2021
What is an upside-down car loan?
My first car is finally sputtering out of existence, so I'm starting to look into getting a car loan to buy a new one. I keep hearing that I need to avoid getting into an upside-down car loan but haven't seen anyone actually define this term. What kind of loan is this, and how do I avoid it?
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Eric Schad
Aug 20, 2021
Can a lender ask about my child support payments?
I'm applying for an auto loan, and I'm wondering if the lender will ask about the child support payments I receive. Will this be considered part of my income?
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Sophie Newman
Aug 04, 2021
How do car lenders check your income?
I'm applying for a car loan through Bank of America, and I'm wondering what the process is to see if I can get the loan. How do they make the calculations that I can afford it based on your income?
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Sophie Newman
Aug 04, 2021
Should I finance a car with a warranty or buy a car with cash?
I need a car to get to my job, but I don't want to add more debt to do so. I have $6,000 saved to buy a car with, which I'll probably spend about $5,000 and save $1,000 as an emergency repair fund. My father thinks I should get a certified pre-owned vehicle that's $12,000, pay half in cash and finance the rest. Which is the better option?
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Eric Schad
Aug 02, 2021

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