Unfortunately, research using data in recent years has suggests that Hispanic and African-American persons, across the nation, saw a significantly greater markup on their auto purchases and loan interest rates than white persons. Ironically, it was the dealerships which themselves were owned by those from minority groups that demonstrated the greatest degree of prejudice in auto financing. So, what is one to do?
Well, despite this being rather disheartening, luckily, there is an effective way to overcome this. There are a number of reliable websites out there where auto buyers can secure their car loans. This way, who you happen to be has no influence on what type of loan you can take out and at what rate (except your credit history, of course). Once done, you can walk into a dealership with your financing in place.
Another issue that auto buyers and loan seekers should watch our for is “add-ons.” What is an auto add-on you ask? What often happens, especially if you follow the advice in the first section of this post and get your financing elsewhere, is that dealers will go far to maintain their profit margins.
So, what they will do, not infrequently, is add unnecessary and exotic features and charges to the contract, such as window etchings and service agreements. They may go so far as to say that the deal on your car will vanish if you do not agree to these excessive items. Other times, they will be buried somewhere deep in the contract that many people will never see.
All in all, auto transport companies like us urge auto buyers to stay on their toes and be their own advocates. If you think you are being cheated, you may be right, just go to another dealership (there are many to choose from). If a salesman is telling you, you need to spend an extra thousand dollars on “varnish” to get a special financing package, he is lying (and breaking the law). Tell him adios.
There may be a sucker born every minute – but you do not have to be one of them!
Here are two links to help you get a reasonable deal: