QUOTE
Auto loan markups: Bad rap or a bad buy?
Source: Detroit Free Press
December 6, 2004 - When a dealership sells you a car or truck, how much should it get for helping you find the right loan and taking care of the paperwork? Is $26,000 over the life of the loan -- on top of the price of the new vehicle -- too much? How about $10,000, $5,000, or even $1,000, for that matter? This is a question that consumer groups, lawmakers and regulators in several states are now pondering after lawsuits against big auto lenders revealed that dealers secretly, and sometimes dramatically, boost the interest rates on loans they arrange for consumers, especially minority buyers. That has led critics to demand that such markups be capped or that dealers charge everyone the same flat fee for finding and processing a loan… http://www.freep.com/money/autonews/markups6e_20041206.htm
Source: Detroit Free Press
December 6, 2004 - When a dealership sells you a car or truck, how much should it get for helping you find the right loan and taking care of the paperwork? Is $26,000 over the life of the loan -- on top of the price of the new vehicle -- too much? How about $10,000, $5,000, or even $1,000, for that matter? This is a question that consumer groups, lawmakers and regulators in several states are now pondering after lawsuits against big auto lenders revealed that dealers secretly, and sometimes dramatically, boost the interest rates on loans they arrange for consumers, especially minority buyers. That has led critics to demand that such markups be capped or that dealers charge everyone the same flat fee for finding and processing a loan… http://www.freep.com/money/autonews/markups6e_20041206.htm
another
QUOTE
4 Out of 5 Dealers Say Flat Fees Are Inevitable
Source: F & I Magazine
Dec 7, 2004 -A new study says that 80 percent of dealers think lenders will adopt flat-fee policies within the next five years. The Rikess Group, an auto industry consulting firm, conducted the study along with accounting firm Dixon Hughes to gauge dealers´ attitudes toward a flat-fee dealer reserve. The companies surveyed 25 dealers and general managers and 12 finance managers, representing more than 230 franchised dealerships. According to the study, 80 percent of dealers consider flat fees between $350 and $600 to be fair to all parties… http://www.fandimag.com/t_inside.cfm?actio...k&storyID=14899
Source: F & I Magazine
Dec 7, 2004 -A new study says that 80 percent of dealers think lenders will adopt flat-fee policies within the next five years. The Rikess Group, an auto industry consulting firm, conducted the study along with accounting firm Dixon Hughes to gauge dealers´ attitudes toward a flat-fee dealer reserve. The companies surveyed 25 dealers and general managers and 12 finance managers, representing more than 230 franchised dealerships. According to the study, 80 percent of dealers consider flat fees between $350 and $600 to be fair to all parties… http://www.fandimag.com/t_inside.cfm?actio...k&storyID=14899
