In a recent article, Forbes website ran an article called "10 Ways to Outwit a Car Dealer" and quoted Lemon Law attorney Ron Burdge discussing the secret ways car dealers make money off customers, including "Dealer Reserve."
That's a practice many banks and other lenders have used for years to basically bribe car dealers to send consumer loans to them by giving them a kickback that is based on the amount of the interest rate that the dealer puts in the finance contract.
"Most people don't realize it but the interest rate on that loan the dealer sets up for you is usually a number that the dealer itself picks out and often it is based on how much of a kickback they can get from the bank," says Burdge.
The Forbes article is full of other car dealer slang terms, many quoted from Ron Burdge's Car Dealer Dictionary found online by clicking here. It makes for interesting reading!
Don't let a car dealer rip you off ... and if you already has, then call us, 1-888-331-6422 Toll Free. Sueing dishonest car dealers and lemon manufacturers is what we do. Every day.
That's a practice many banks and other lenders have used for years to basically bribe car dealers to send consumer loans to them by giving them a kickback that is based on the amount of the interest rate that the dealer puts in the finance contract.
"Most people don't realize it but the interest rate on that loan the dealer sets up for you is usually a number that the dealer itself picks out and often it is based on how much of a kickback they can get from the bank," says Burdge.
The Forbes article is full of other car dealer slang terms, many quoted from Ron Burdge's Car Dealer Dictionary found online by clicking here. It makes for interesting reading!
Don't let a car dealer rip you off ... and if you already has, then call us, 1-888-331-6422 Toll Free. Sueing dishonest car dealers and lemon manufacturers is what we do. Every day.