December 29th, 2007
Car Dealer Arranged Car Loans - What You Need To Know!
The Finance Office in a car dealership is one of the most lucrative profit centers in a car dealership.
Certainly car dealers are entitled to make a legitimate profit like any other business, but when they’re making a piece of the action from arranging a car loan for a customer, that money they earn which is called “dealer reserve,” is indirectly coming out of the customer’s pocket in the form of a higher interest rate.
I worked as a Finance Manager in several large new car dealerships, and I can tell you that quite often I made — for the car dealer — $1,500 to $2,000 “dealer reserve” on arranging any given car loans.
, it leaves him or her scratching their head wondering what the heck is going on!