Most probably know if you have credit problems will be charged a higher interest rate. Most customers, even expecting it. But, Did you know you may have to pay thousands of extra dollars that a customer with good credit for the same car? A and the bank or financial institution financing your car knows everything about him. As a matter of fact, are getting extra money. You are already penalized with a higher interest rate, why the same car cost thousands more than your friend or neighbor with good credit? Â

• The answer is a “discount” or “commission bank “. These are additional fees for a bank or finance company office only to lend their money. The fees vary and can range from $ 100 3 to 4 thousand dollars depending on the severity of credit. To be fair, the rate banks use to offset the losses they may incur a high risk client. When the financing for someone with credit problems are taking a risk than a conventional loan good credit. Customers have shown credit history can not afford or do not pay on time. That means more collections and maybe even the costs of recovery for the bank loan financing. Thus, depending on how much risk they feel they are taking, usually decide to charge a levy to the dealership just to buy the loan from them.
• When approval is sent from the bank to the finance manager will explain the specific bid amount, or rate of your loan. Some banks charge a percentage of the amount financed. Others, a fixed dollar amount. All rates are maintained with product distributors, when the bank sends the money to his contract. The Banks say they do not pass the dealers to charge extra to customers. In other words, I am not authorized to tell you that you can charge $ 6,000 for a car that we sell everyone for $ 5,000. There’s even a name for the revelation that “discount”. Some banks even make us get a form signed by the client indicating did not increase the selling price after we learned that credit had problems.Â
• Bank commission to the dealer in a situation difficult. If we give a price of a car, then know that we have to pay off your loan may mean that we lose too much money or not enough profit. It is unrealistic to think that the dealer can absorb what may amount to thousands of additional dollars in fees without charge the customer all or part of the fee. After all, a car dealership is there to make a profit, and although we are told that banks can not pass along that charge to you, you have to come from somewhere part. If the bank fee is $ 800.00 for example, which unfortunately will be incorporated into the selling price of your car, and until now never would have known the client side of good credit you can buy the same car for less.