Only you can decide if the difference between 4.67% and 6% is worth fighting over. No consumer affairs department in the government you could take it to? Or the dealer licensing bureau at the DMV.
Honda Dealership inflated pricing via interest rate
- Thread starter penz08
- Start date
I don't know if we have that kind of protection here in Canada, if so, I am unaware that we do.
This isn't a government concern. The issue (or not an issue) is that Honda's financial group allows dealers to "mark up" the interest rate. My credit union doesn't allow dealers to do this. They offer different incentives to dealer finance departments if they write customer's loans with them.
Well I just get a bank check and pay the full amount. Funny they never ask me to prove that I have the money, I was always ok showing them the balance in my checking account, they just do the paperwork and I show up with the bank check. Before when I didn't know the bank manager, they'd try to charge me for the bank check, but then when I asked for it in cash, they waived the bank check charge.I always get a pre-approved loan from my bank before I even walk into the dealership. Basically like having a blank check
I wonder if the dealer put you on a special list to sabotage or otherwise jack with your vehicle during service visits as 'payback'? I hate the finance/closing center too.....home of the over priced/worthless extended warranties, etc! If memory serves when I bought a new SUV 04/19 they were trying to layer on like 3 overlapping/duplicative extended warranties (factory warranty plus a couple more extended warranties) ..after making sure I knew how super reliable my new Toyota was!
They probably hoped you were a payment buyer and the monthly payment at the higher interest rate would be acceptable to you. Then they make an extra $xxx from the higher interest rate. Some car buyers never look at anything but the payment amount as that's the only number that matters to them.
OR-simply because this manufacturer has always had spotty product quality.
You I've never seen it, however, it is literally standard practice in every car business in existence that I am aware of. Capitalism is state sponsored usury and any financial transaction in some way will involve usury in order to generate revenue, it's really just that simple.
Scuttlebut is that Honda Canada will get about 50% of normal product supply for 2023 Model Year.
No-it's not that simple.
There are at least two of us that haven't ever seen this practice. Your post is nonsensical-on many levels. If you truly believe what you say there are other countries where Capitalism doesn't exist and you could move there.
You are aware that nobody is forcing anybody else to borrow money.....right?
No it really is that simple and a common practice in any business that engages in finance, it has been publicly acknowledged as far back as when Shakespeare produced The Merchant of Venice. I wholeheartedly agree that many people are oblivious to such practices. Perhaps a study in the roots of these things in the Florentine era might help? I could recommend at least one good book on the subject matter if anyone happens to be interested.
When we bought my wifes car out of lease we got a 3.5 % loan.
I didn't even try for anything lower,1% lower is not worth the time to find.
We only financed $7K.
I didn't even try for anything lower,1% lower is not worth the time to find.
We only financed $7K.
Normally a dealer trick is offer higher financing if not discussed. Some people don’t realize they are signing to it even though shown legally.
The sale of our 2018 Tiguan waited 3 days as the $10k loan was at 6.9% dealer bank instead of VW 1.9%. In USA I believe they can overcharge the real interest rate and split proceeds half to dealer and half to bank writing loan. Dealer gets commissioned up front of excess split of interest rate. That is why they encourage you to take financing as last ditch effort and then encourage refinance to lower rate .
The sale of our 2018 Tiguan waited 3 days as the $10k loan was at 6.9% dealer bank instead of VW 1.9%. In USA I believe they can overcharge the real interest rate and split proceeds half to dealer and half to bank writing loan. Dealer gets commissioned up front of excess split of interest rate. That is why they encourage you to take financing as last ditch effort and then encourage refinance to lower rate .
I never use Stealership financing my Credit Union beats them hands down every time and I still pay cash!
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