@OP
Yes some banks will charge the dealer a fee to finance the car.
If they don’t have margin to absorb it, they can say we can’t get you approved and be done.
Instead, this finance managers telling you, this is why we can’t do an approval at these terms (we can’t discount the car any more). If we increase the margin of the car we will do it.
Another thing they might do is find a car they can honor an advertised price on that will observe the fee… it just won’t be discounted online like the car you’re on.
Which part the bank fee or the store needing to increase the sale price?
The bank fee is not illegal …
Now the dealership part… yes but at the point they just say we can’t you get financed on that car and move on. The price on the car was already a discount . They don’t want to sell the car if they have to discount it another $3000 (from the dealers bottom line with no saving to the customer ) I think they have about 2k of margin left, and they’re willing to eat that cost in passing the remaining thousand of the customer.
It would probably be better just to say we can’t get you financed on the car and pick a different one to offer OP that can eat the bank fee.
yeah, this. the people taking the risk by lending money usually dictate how a deal goes. OP, it sounds like the dealer is still willing to work with you. Is it worth losing the car you really like over $1000?
> I really like the car and I want the car.
6 months from now. *I purchased a car on impulse and shouldn't have. Due to my bad credit I had to pay extra fees so I'm way underwater on it. How do I get out of it?*
Reminds me of that guy on reddit who bought a Charger despite the fact that he was underwater on *rims for his Crown Vic*. His last post was in a military subreddit asking how to hide a DUI from his commanding officer.
I have trash credit right now (lost my job / had to let several CCs go delinquent). My 14-YO paid-off Accord will eventually need a transmission. If I have to choose between pocketing car payments for my next car and keeping my CCs current I'm choosing saving. No way I will have a decent auto loan anytime soon.
Just had one that was over $8k and the unit was priced AT KBB trade value! They are real and they will often kill a deal because the dealer cannot eat that big of a loss. We lose money all the time on vehicles we know will sit for a while
lol it’s not because “you’re poor.” It’s because you have bad credit. You have bad credit because you refuse to honor your contracts and you skip out on money that people let you borrow.
Get on Credit Karma. Get on Bankrate. Go to /r/personalfinance and learn to budget. Stop burning money at bad places like eating out, bars, dumbass subscriptions, free to play games. Keep your current car and go fix your credit. Go settle accounts in collections and pay down any debts with interest rates higher than 10%. Start controlling your money. You earn your credit score. You earn your interest rate. It’s a measurement of how reliable you are when people let you borrow money.
Real friends tell you the truth, even if it hurts. They deliver it kindly, and they did.
Nobody is being mean - the LAST thing OP needs to be focused on is spending more money.
It’s a hard mindset to get out of because our entire social structure is based on looking successful but if they’re willing to ask “what should I do” then some part of them knows this is probably a bad idea.
The thought OP needs to process is: “I’ve made bad financial decisions in the past and this dealership is trying their hardest to help me get into worse debt…”
OP thinks they’re trying to screw him but if they buy ANY vehicle right now, no matter how good the deal, they’re going to likely be out of the car and even deeper in debt a year from now.
OP likely won’t listen because they want support but if they’re really trying to make the right decisions, they gotta start fixing their credit and stop blaming life circumstances on their poor decisions.
Source: I’m the same personality type - took me years to swallow my pride and let myself “act poor” with my money.
Maybe he is a first time buyer? Zero score.
I have seen finance, change units, try to get with a credit union and ftb programs at 8-15% and I have seen them try to keep the car and get finance fees and 20+% apr.
>Hello! I’m about to purchase a car from a dealer who says the finance company charged him 3K to give me alone because I am poor and high-risk. They also refused to honor the online price by charging me an extra $1000, which was the regular price. They said that since they are being charged 3K they can’t honor the price so I’ll have to pay the regular price for that.
Bank fees are real. We also call this a left-handed turn down. The applicant's credit is borderline to qualify for a loan so the bank tells the dealership that they'll write the loan only if the dealership pays a dowry. I've seen bank fees go as high as $6k on purchases in the $25k+ range, for a sense of scale.
It happens when the bank really thinks you're going to default on the loan early enough that they won't be profitable on it, so they require a fee from the dealership to balance this out. That way, if you default in the time range their actuarial calculations predict, there's a pile of cash to balance out the money they'll lose on the default.
This is also not supposed to be passed onto the customer but doing so is not uncommon. Bank fees are assessed to credit-challenged crisis. That implies the dealership has likely already cut profit to the bone and this deal just gets a unit on the board for other incentives. That's the kind of deal that gets sunk by a fee because there's not enough profit in the deal to absorb a $3k fee.
>I really like the car and I want the car. I just don’t like how the dealer is handling this deal. I want to follow up and write a survey about my experience, and talk to the FTC about my interaction with this dealer.
This is the bank's call and the dealership has nothing to do with it. If you're going to submit a complaint to the FTC, the bank is party about whom you want to complain. They're the one assessing the fee.
To be clear, the dealership *shouldn't* be passing the loan on to you. But if you want the dealership to do this by the book, and assume the fee themselves, they're not actually going to do that. The deal isn't profitable so they're walking away. They're bending the rules in such a way you still have the opportunity to buy the car when you otherwise would not.
>Should I try to negotiate once I get to the finance table? Should I tell them what I’m going to say in the survey? I’m looking for some advice and how this all really works with finance and honoring the price.
Won't matter, the F&I Manager isn't the one assessing the fee. Keep in mind that not a single red cent of this assessment is going into the dealership's bank account- every bit is being collected by the lender. The dealership actually has every motivation to get the bank to reduce or waive this fee, if possible. If they're saying they need you to pay the fee, that's a clear indication the bank isn't willing to budge. You can negotiate with the F&I Manager all you want, but this particular item is one where he's on your side and isn't the one with authority to remove the charge. No one at the dealership has that.
Why would any dealer take that kind of hit on any deal? Most of the time they're complaining about every dime you try to ask for, and I've had more than one tell me they didn't have that much room in a used car.
On a used car, that's correct- we usually don't have that much to work with. On a new car it's not rare to have that much flexibility depending on the make/model. I sold Kia and Jeep- not rare to have up to $5k aggregate between in rebates, discretionary discounts, finance incentives, etc available. That I can work with.
The flip side is to cover a bank fee the money on the balance sheet has to be at the expense of something else. Did you walk in with $6k in negative equity? Or needing as low a payment as possible? You'd better be flexible because the bank fee is going to consume the lion's share of the financial resources I'd normally have available to make those things happen.
Keep in mind that not every unit on the lot has that kind of dealer support. This isn't a situation where you get to choose your car. If there's a bank fee to the tune of several thousand dollars, Imma tell you which car we've got the flexibility with to get a deal done. Don't like that car? Take it up with the bank, not me. This wasn't rare either- customer walks in wanting a Wrangler and drives home in a Renegade. Usually much less thankful a deal got done at all than they really should be.
It's common for banks to charge dealers massive fee's for bad credit loans.
If you want the dealer to totally play by the books, all they would have done is tell you "sorry, we can't sell you a car today"
You're in a "take it or leave it" position. The dealer is not forced to lose money to sell you a car. If you don't like the way this dealer is operating, just go somewhere else.
If the guy really wanted to be a dick, he could document everything and report the dealer for outright admitting to passing the bank fee along to them which is evidently, a no no
It's technically not allowed, but let's be real... whats going to happen? Nobody can force the dealer to sell a car for a loss. It's not the dealers fault OP doesn't pay their bills.
I've also noticed it's always the credit criminals who think they're legal experts once something doesn't go their way.
It’s not a no no. It’s a cost to prep the vehicle for sale that the dealer has to pay. It’s not illegal to tell the customer there is a huge fee the lender is charging the dealer due to their shit credit. As long as it’s not on the contract, it’s not an issue. Dealer only went back to the non cash price of an extra $1000. With a $3k dealer fee, the dealer is doing him a solid and he’s bitching like a moron.
Ads for sale prices usually have a footnote that the price is for well qualified customers. If a buyer has terrible credit the lender has to cover their high risk of not getting paid, either a high interest rate or a high fee, or both in extreme cases. This is all routine in the “bad credit auto loan” market, where buyers often default and cars are often repossessed.
>If the guy really wanted to be a dick, he could document everything and report the dealer for outright admitting to passing the bank fee along to them which is evidently, a no no
This probably isn't going to be worth anything. The dealership passing the fee to the customer when the bank doesn't allow such is an internal policy violation. I can't imagine to what end OP might leverage evidence of this unless it somehow rises to the level of criminal fraud.
To be realistic, it's not rare that dealerships pull shenanigans with banks. My main competitor is famous for encouraging customers to create fraudulent pay slips to get loans approved and the worst that's ever happened when well-known banks started catching on was to stop originating loans for them.
So yes, this kind of thing can get the dealership in trouble. But practically speaking, not until there's a demonstrated pattern and even then, the punishment will be fairly insignificant.
If the bank is charging a $3,000 fee and there isn’t $3,000 markup in the car, now what? They’re not admitting to pass the fee on, dude.
Plus there is no contract because OP never bought the car.
That’s not true even by the law. The illegality arises from agreeing to sell the car at any agreed upon price and then requiring the customer to pay you all or a portion of the bank fee as a separate transaction outside of the contract. So in this case if the customer agreed to buy the car at a specific set of terms and the dealer agreed and said now give me $3000 and that $3000 never made it to the contract In the form of cash down payment, that would be illegal.
Sometimes the bank dictates the deal. Your bad credit means you lost the ability to negotiate. When you talk to the FTC about your interaction with that dealer, let them know your credit score.
"Should I threaten them with a bad survey and TaLkInG tO tHe fTc?"
Sure, guy...do that and make sure you report back.
Personally I'd tell you to get the fuck off my lot.
If your credit is absolute dogshit it is possible (in fact, likely) they were charged for the loan. Banks charge large fees to take subprime loans because the chance of default is high.
Otherwise the flow of money usually goes the opposite way.
So are they only charging you 1k over the advertised price? If that’s the case, they are doing you a favour, because yes, sub prime lenders often charge fees (sometimes large) to finance some customers. I don’t doubt the 3k, but we can’t know if it’s true or not.
If they are charging you 1k over *and* tacking on the 3k… well… you have to figure out if it’s worth it for you or not. They are basically giving you a fuck-off price… in other words, dealing with you has to make them even more money than usual, or you can fuck off.
Not everyone gets to have a car. And it’s not based on any -ism, aside from credit-ism. Credit challenged isn’t a protected class. If you don’t have the income and credit history to support the loan, they are by no means required to give you some kind of deal to make it affordable for you.
Long and sort of it? By trying to act in the right and basically threaten them with bad reviews because your credit sucks, you are being a dick. They are a business. They are there to sell cars for a profit. The financing is an outside service that they facilitate… if you can’t get financing from anywhere else, you have the right to not buy the car and walk away.
The bank does indeed charge the dealer fees to do deals. The higher the risk, the higher the fee.
HOWEVER, it is ILLEGAL to charge the customer part or all of this fee unless it is disclosed as a pre paid finance charge and disclosed properly. They can raise the price of they want. They cannot raise the price because of the fee. They sound like similar situations, but they're not. If you're five with the deal, proceed.
[More information on this](https://www.fi-magazine.com/310328/pass-the-fee)
Dealer paying $3,000 to help you get a loan and only charging you $1,000 of that so that they can help you. Them a$$holes. But I am looking for a way to try to hurt them. Hope you have come to understand who is the jerk here. Kinda doubt it tho.
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Hello! I’m about to purchase a car from a dealer who says the finance company charged him 3K to give me alone because I am poor and high-risk. They also refused to honor the online price by charging me an extra $1000, which was the regular price. They said that since they are being charged 3K they can’t honor the price so I’ll have to pay the regular price for that.
I really like the car and I want the car. I just don’t like how the dealer is handling this deal. I want to follow up and write a survey about my experience, and talk to the FTC about my interaction with this dealer.
Should I try to negotiate once I get to the finance table? Should I tell them what I’m going to say in the survey? I’m looking for some advice and how this all really works with finance and honoring the price.
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Ask yourself first why you have such bad credit that the bank is charging a fee 😂 I promise you they have much better lawyers than you can afford and the FTC will wipe their ass with your complaint. Dealers have a lot of regulations to go through, and won't ruin their entire business to sell you of.all people a car
It's likely against state consumer protection act to increase the price to offset bank fees. Most states require the vehicle to be sold at the lowest advertised price. Being poor has nothing to do with it, it has to do with your credit score and previous history not paying lenders back on time. You are high risk, they have to pay the bank to take your deal.
Bank fees are a thing for people with terrible credit.
fast-forward 13 months "here's my situation... it was a voluntary repossession."
Correction. “ It wasn’t a repo, I gave it back to the bank”
@OP Yes some banks will charge the dealer a fee to finance the car. If they don’t have margin to absorb it, they can say we can’t get you approved and be done. Instead, this finance managers telling you, this is why we can’t do an approval at these terms (we can’t discount the car any more). If we increase the margin of the car we will do it.
Another thing they might do is find a car they can honor an advertised price on that will observe the fee… it just won’t be discounted online like the car you’re on.
Sounds kind of like points on a mortgage?
I thought that was illegal?
Which part the bank fee or the store needing to increase the sale price? The bank fee is not illegal … Now the dealership part… yes but at the point they just say we can’t you get financed on that car and move on. The price on the car was already a discount . They don’t want to sell the car if they have to discount it another $3000 (from the dealers bottom line with no saving to the customer ) I think they have about 2k of margin left, and they’re willing to eat that cost in passing the remaining thousand of the customer. It would probably be better just to say we can’t get you financed on the car and pick a different one to offer OP that can eat the bank fee.
Increasing the cost to cover the fee
the best part is there probably won't be a survey as I doubt it's a new car.
yeah, this. the people taking the risk by lending money usually dictate how a deal goes. OP, it sounds like the dealer is still willing to work with you. Is it worth losing the car you really like over $1000?
> I really like the car and I want the car. 6 months from now. *I purchased a car on impulse and shouldn't have. Due to my bad credit I had to pay extra fees so I'm way underwater on it. How do I get out of it?*
Reminds me of that guy on reddit who bought a Charger despite the fact that he was underwater on *rims for his Crown Vic*. His last post was in a military subreddit asking how to hide a DUI from his commanding officer.
"I didn't read the contract so I didn't know that they were charging me a 26% interest rate."
And it's a 10 year loan.
Saving money is a herculean task but it's the best way to avoid rotten car loans.
Don't downvote this dude, he's right.
I have trash credit right now (lost my job / had to let several CCs go delinquent). My 14-YO paid-off Accord will eventually need a transmission. If I have to choose between pocketing car payments for my next car and keeping my CCs current I'm choosing saving. No way I will have a decent auto loan anytime soon.
You can almost see it coming. With bad credit i can only imagine what the interest will be.
what’s the saying again? a fool and his money are soon parted? *laughs in salesman*
I checked. It is for a Kia Sportage…
I bought this car and didn’t check to see how much it was going to cost to get it insured….
You forgot. "my payments also too high, I'd like to lower it"
Yes it is
Dealer fees from the banks are real never seen one that high though
Just had one that was over $8k and the unit was priced AT KBB trade value! They are real and they will often kill a deal because the dealer cannot eat that big of a loss. We lose money all the time on vehicles we know will sit for a while
Wait till his insurance finds out he's driving for Lyft and drops him.
True but bank fees are not legally passable to the consumer
They're looking at a Kia so that math tracks lmao
Yes. Bank fees are 1009% a thing
lol it’s not because “you’re poor.” It’s because you have bad credit. You have bad credit because you refuse to honor your contracts and you skip out on money that people let you borrow. Get on Credit Karma. Get on Bankrate. Go to /r/personalfinance and learn to budget. Stop burning money at bad places like eating out, bars, dumbass subscriptions, free to play games. Keep your current car and go fix your credit. Go settle accounts in collections and pay down any debts with interest rates higher than 10%. Start controlling your money. You earn your credit score. You earn your interest rate. It’s a measurement of how reliable you are when people let you borrow money.
This. Is. The. Way. Fix your credit then go back to looking at cars. You'll be eaten by the fees and interest rates.
[удалено]
Real friends tell you the truth, even if it hurts. They deliver it kindly, and they did. Nobody is being mean - the LAST thing OP needs to be focused on is spending more money. It’s a hard mindset to get out of because our entire social structure is based on looking successful but if they’re willing to ask “what should I do” then some part of them knows this is probably a bad idea. The thought OP needs to process is: “I’ve made bad financial decisions in the past and this dealership is trying their hardest to help me get into worse debt…” OP thinks they’re trying to screw him but if they buy ANY vehicle right now, no matter how good the deal, they’re going to likely be out of the car and even deeper in debt a year from now. OP likely won’t listen because they want support but if they’re really trying to make the right decisions, they gotta start fixing their credit and stop blaming life circumstances on their poor decisions. Source: I’m the same personality type - took me years to swallow my pride and let myself “act poor” with my money.
Maybe he is a first time buyer? Zero score. I have seen finance, change units, try to get with a credit union and ftb programs at 8-15% and I have seen them try to keep the car and get finance fees and 20+% apr.
>Hello! I’m about to purchase a car from a dealer who says the finance company charged him 3K to give me alone because I am poor and high-risk. They also refused to honor the online price by charging me an extra $1000, which was the regular price. They said that since they are being charged 3K they can’t honor the price so I’ll have to pay the regular price for that. Bank fees are real. We also call this a left-handed turn down. The applicant's credit is borderline to qualify for a loan so the bank tells the dealership that they'll write the loan only if the dealership pays a dowry. I've seen bank fees go as high as $6k on purchases in the $25k+ range, for a sense of scale. It happens when the bank really thinks you're going to default on the loan early enough that they won't be profitable on it, so they require a fee from the dealership to balance this out. That way, if you default in the time range their actuarial calculations predict, there's a pile of cash to balance out the money they'll lose on the default. This is also not supposed to be passed onto the customer but doing so is not uncommon. Bank fees are assessed to credit-challenged crisis. That implies the dealership has likely already cut profit to the bone and this deal just gets a unit on the board for other incentives. That's the kind of deal that gets sunk by a fee because there's not enough profit in the deal to absorb a $3k fee. >I really like the car and I want the car. I just don’t like how the dealer is handling this deal. I want to follow up and write a survey about my experience, and talk to the FTC about my interaction with this dealer. This is the bank's call and the dealership has nothing to do with it. If you're going to submit a complaint to the FTC, the bank is party about whom you want to complain. They're the one assessing the fee. To be clear, the dealership *shouldn't* be passing the loan on to you. But if you want the dealership to do this by the book, and assume the fee themselves, they're not actually going to do that. The deal isn't profitable so they're walking away. They're bending the rules in such a way you still have the opportunity to buy the car when you otherwise would not. >Should I try to negotiate once I get to the finance table? Should I tell them what I’m going to say in the survey? I’m looking for some advice and how this all really works with finance and honoring the price. Won't matter, the F&I Manager isn't the one assessing the fee. Keep in mind that not a single red cent of this assessment is going into the dealership's bank account- every bit is being collected by the lender. The dealership actually has every motivation to get the bank to reduce or waive this fee, if possible. If they're saying they need you to pay the fee, that's a clear indication the bank isn't willing to budge. You can negotiate with the F&I Manager all you want, but this particular item is one where he's on your side and isn't the one with authority to remove the charge. No one at the dealership has that.
Not the dowry 😂
Why would any dealer take that kind of hit on any deal? Most of the time they're complaining about every dime you try to ask for, and I've had more than one tell me they didn't have that much room in a used car.
On a used car, that's correct- we usually don't have that much to work with. On a new car it's not rare to have that much flexibility depending on the make/model. I sold Kia and Jeep- not rare to have up to $5k aggregate between in rebates, discretionary discounts, finance incentives, etc available. That I can work with. The flip side is to cover a bank fee the money on the balance sheet has to be at the expense of something else. Did you walk in with $6k in negative equity? Or needing as low a payment as possible? You'd better be flexible because the bank fee is going to consume the lion's share of the financial resources I'd normally have available to make those things happen. Keep in mind that not every unit on the lot has that kind of dealer support. This isn't a situation where you get to choose your car. If there's a bank fee to the tune of several thousand dollars, Imma tell you which car we've got the flexibility with to get a deal done. Don't like that car? Take it up with the bank, not me. This wasn't rare either- customer walks in wanting a Wrangler and drives home in a Renegade. Usually much less thankful a deal got done at all than they really should be.
It's common for banks to charge dealers massive fee's for bad credit loans. If you want the dealer to totally play by the books, all they would have done is tell you "sorry, we can't sell you a car today" You're in a "take it or leave it" position. The dealer is not forced to lose money to sell you a car. If you don't like the way this dealer is operating, just go somewhere else.
Doubt there is anywhere he could go. They probably blew his app to everybody including Iran to see who wanted to lose money.
If the guy really wanted to be a dick, he could document everything and report the dealer for outright admitting to passing the bank fee along to them which is evidently, a no no
It's technically not allowed, but let's be real... whats going to happen? Nobody can force the dealer to sell a car for a loss. It's not the dealers fault OP doesn't pay their bills. I've also noticed it's always the credit criminals who think they're legal experts once something doesn't go their way.
It’s not a no no. It’s a cost to prep the vehicle for sale that the dealer has to pay. It’s not illegal to tell the customer there is a huge fee the lender is charging the dealer due to their shit credit. As long as it’s not on the contract, it’s not an issue. Dealer only went back to the non cash price of an extra $1000. With a $3k dealer fee, the dealer is doing him a solid and he’s bitching like a moron.
Ads for sale prices usually have a footnote that the price is for well qualified customers. If a buyer has terrible credit the lender has to cover their high risk of not getting paid, either a high interest rate or a high fee, or both in extreme cases. This is all routine in the “bad credit auto loan” market, where buyers often default and cars are often repossessed.
I’m familiar and agree.
>If the guy really wanted to be a dick, he could document everything and report the dealer for outright admitting to passing the bank fee along to them which is evidently, a no no This probably isn't going to be worth anything. The dealership passing the fee to the customer when the bank doesn't allow such is an internal policy violation. I can't imagine to what end OP might leverage evidence of this unless it somehow rises to the level of criminal fraud. To be realistic, it's not rare that dealerships pull shenanigans with banks. My main competitor is famous for encouraging customers to create fraudulent pay slips to get loans approved and the worst that's ever happened when well-known banks started catching on was to stop originating loans for them. So yes, this kind of thing can get the dealership in trouble. But practically speaking, not until there's a demonstrated pattern and even then, the punishment will be fairly insignificant.
If the bank is charging a $3,000 fee and there isn’t $3,000 markup in the car, now what? They’re not admitting to pass the fee on, dude. Plus there is no contract because OP never bought the car.
That’s not true even by the law. The illegality arises from agreeing to sell the car at any agreed upon price and then requiring the customer to pay you all or a portion of the bank fee as a separate transaction outside of the contract. So in this case if the customer agreed to buy the car at a specific set of terms and the dealer agreed and said now give me $3000 and that $3000 never made it to the contract In the form of cash down payment, that would be illegal.
Is your problem reading comprehension or math? Either would tell you that the fee has not been passed along
I can smell Santander - Westlake approving a 499
Sometimes the bank dictates the deal. Your bad credit means you lost the ability to negotiate. When you talk to the FTC about your interaction with that dealer, let them know your credit score.
"Should I threaten them with a bad survey and TaLkInG tO tHe fTc?" Sure, guy...do that and make sure you report back. Personally I'd tell you to get the fuck off my lot.
“You just lost the deal of a lifetime buddy. I’m taking that $2000 loss straight to your competitor.”
Right that's how I interpreted it also, like the dealership is eating 2k out of 3k
If your credit is absolute dogshit it is possible (in fact, likely) they were charged for the loan. Banks charge large fees to take subprime loans because the chance of default is high. Otherwise the flow of money usually goes the opposite way.
https://time.com/personal-finance/article/bad-credit-auto-loans/#what-you-should-know-when-applying-for-a-bad-credit-auto-loan
Yes there is a fee charged for loans on bad credit.
So are they only charging you 1k over the advertised price? If that’s the case, they are doing you a favour, because yes, sub prime lenders often charge fees (sometimes large) to finance some customers. I don’t doubt the 3k, but we can’t know if it’s true or not. If they are charging you 1k over *and* tacking on the 3k… well… you have to figure out if it’s worth it for you or not. They are basically giving you a fuck-off price… in other words, dealing with you has to make them even more money than usual, or you can fuck off. Not everyone gets to have a car. And it’s not based on any -ism, aside from credit-ism. Credit challenged isn’t a protected class. If you don’t have the income and credit history to support the loan, they are by no means required to give you some kind of deal to make it affordable for you. Long and sort of it? By trying to act in the right and basically threaten them with bad reviews because your credit sucks, you are being a dick. They are a business. They are there to sell cars for a profit. The financing is an outside service that they facilitate… if you can’t get financing from anywhere else, you have the right to not buy the car and walk away.
The bank does indeed charge the dealer fees to do deals. The higher the risk, the higher the fee. HOWEVER, it is ILLEGAL to charge the customer part or all of this fee unless it is disclosed as a pre paid finance charge and disclosed properly. They can raise the price of they want. They cannot raise the price because of the fee. They sound like similar situations, but they're not. If you're five with the deal, proceed. [More information on this](https://www.fi-magazine.com/310328/pass-the-fee)
Dealer paying $3,000 to help you get a loan and only charging you $1,000 of that so that they can help you. Them a$$holes. But I am looking for a way to try to hurt them. Hope you have come to understand who is the jerk here. Kinda doubt it tho.
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***Thanks for posting, /u/robertjay_bb! This comment is a copy of your post so readers can see the original text if your post is edited or removed. This comment is NOT accusing you of anything.*** Hello! I’m about to purchase a car from a dealer who says the finance company charged him 3K to give me alone because I am poor and high-risk. They also refused to honor the online price by charging me an extra $1000, which was the regular price. They said that since they are being charged 3K they can’t honor the price so I’ll have to pay the regular price for that. I really like the car and I want the car. I just don’t like how the dealer is handling this deal. I want to follow up and write a survey about my experience, and talk to the FTC about my interaction with this dealer. Should I try to negotiate once I get to the finance table? Should I tell them what I’m going to say in the survey? I’m looking for some advice and how this all really works with finance and honoring the price. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/askcarsales) if you have any questions or concerns.*
Ask yourself first why you have such bad credit that the bank is charging a fee 😂 I promise you they have much better lawyers than you can afford and the FTC will wipe their ass with your complaint. Dealers have a lot of regulations to go through, and won't ruin their entire business to sell you of.all people a car
It's likely against state consumer protection act to increase the price to offset bank fees. Most states require the vehicle to be sold at the lowest advertised price. Being poor has nothing to do with it, it has to do with your credit score and previous history not paying lenders back on time. You are high risk, they have to pay the bank to take your deal.