Auto Lending Manipulation
Cash 4 Cars Cleveland is back with the latest news within the auto scrap and recycling business. Our next topic is focused on a common auto financing tactic; however, we will first review the variety of services that we offer. We are a scrap and wrecked vehicle buyer that is among the industry’s highest paying for junk cars. Are you trying to determine how to sell a junk car or where to receive cash for a damaged car? If you are looking for who is the highest paying for junk cars in Berea, Avon, or Geauga County—you have found it! Residents seeking a wrecked vehicle buyer that will pay cash for a damaged car in Macedonia, Bedford, or Aurora, are encouraged to call (216) 359-1010. We are offering junk vehicle removal services in the areas of Streetsboro, Bentleyville Village, and Mentor.
This next story illustrates how auto dealers will add an increase to interest rate that the bank is willing to offer their customers in exchange for a commission for themselves. In the March 6, 2016 edition of the Knoxville News Sentinel there was an article headlined as ‘Auto finance is a symptom of a bigger problem’ composed by David Moon as follows: “A friend recently bought a car, reminding me why car salesmen have often earned their negative reputation. Also, it is a reminder of problems in our economic system. New auto dealers sell a product that is identical to those available at other dealers, yet use a pricing strategy designed to unknowingly manipulate the buyer into paying higher prices than needed.
Dealerships earn as much as a 1/3 of their profits from the sale of finance & insurance products (F&I), more than they earned on actual auto sales. In many cases they don’t disclose this, which was the case for my friend. The salesperson working with him produced a document purporting the lowest a rate from this lender was 2.89%. The car dealer was receiving the difference between the bank’s actual rate of 2.39% and the dealer’s marked-up rate of 2.89%. Employees of the dealership twice denied receiving any financing revenues. The receipt of such kickbacks is common in the auto industry. Dealers have the flexibility to adjust the interest rate markup they charge, buyers end up paying much more. After my friend revealed his understanding of this process, the dealer corrected this “error” and offered the actual lowest rate. The flaws in this process expose a bigger problem: flaws in both our economic & justice systems. Many of the problems people ascribe to free markets are actually the result of violations of free-market principles. Free markets require full and complete information between buyers and sellers. In most complicated purchases (financial services being among the worst offenders), sellers work very hard to complicate the process unnecessarily.
Different industries are regulated in different ways, with the same immoral act being illegal in one industry and an accepted practice in another. The Consumer Finance Protection Bureau is working to address the unequal pricing of car loans, but it only has leverage over the lenders, not the dealers. Like malfeasance in many industries, this system of kickbacks is completely legal. But to paraphrase Samuel Johnson, the law is the last refuge of the scoundrel.”
Who is the highest paying for junk cars?
We pay cash for a damaged car 6 days a week throughout Westlake, Shaker Heights, and North Randall. Cash 4 Cars Cleveland is a wrecked vehicle buyer that is focused on environmental preservation. If you are concerned with how to sell a junk car in Richmond Heights, Solon, and Walton Hills—then there is no reason for concern. The how to sell a junk car process is essentially three easy steps:
- Call our scrap car buyer for a junk car quote, which is the amount of cash we can pay for the car.
- If you agree to proceed, we will coordinate a time to retrieve the junk car
- We arrive to pay you cash for the car and tow it away!
Those with a junk vehicle to sell in Lyndhurst, Ohio City, and Highland Heights, should know that our organization believes in waste diversion by aiming to reuse & recycle whenever possible. Those who are environmentally conscious in Maple Heights, Middlefield, and University Heights, will be happy to know that our vehicle scrap and recycling processes help to alleviate global warming and its negative environmental effects. Same-day scrap car towing and fast cash for your clunker are now available in the regions of Warrensville Heights, Pepper Pike, and Euclid.
