It works both ways.... I have perfect credit and when purchasing a vehicle
from Chevy, I told them I didn't want their GMAC financing as my bank had a
better rate than 4.4% they were offering (i lied)... The sales guy went
and hung out with the sales manager so I opened my book. (Always take
reading material). He came back in about 5-10 mins and asked if I would go
with GMAC if they matched the made up number I came up with of 3.5% for 60
months. I reluctantly agreed.. HAHAHAHA and signed immediately!

So when Chevy was offering the $3500 rebates or $1000 rebate and the
financing of 3.5%... I got both! $3500 and 3.5% But you have to be a
stone faced liar... which I can do, no problem. I know its all a game, and
this time the consumer won!

But, yes, you have to know what the numbers should look like before you walk
into a dealership.

Keith



"Sean Dinh" <seannydinh@znet.com> wrote in message
news:40733A8A.37851BDC@znet.com...
> Honda dealer tried to charge me 10% interest on a car loan. I told them
that I
> should get a better rate. They bs me with bad credit score. I told them I
was pre
> approved for a car loan with much better rate from a bank. They then
changed their
> tune and offered me a better rate then the bank. The finance guy bs me for
2 hours.
> I didn't tell him that I used to work in loan industry.
>
> The finance guy from Mazda tried to con me. During negotiation, he agreed
to the
> rate I asked. He went to get approval from his boss. He came back with a
payment,
> not rate. I confronted him that the payments were much higher than the
rate we
> agreed. He walked away and came back with the right payments.
>
> Car loans are very dirty. Two of my co-worker recently get bad deals. They
don't
> care after my friend confronted them with the bad deals they got. Those
victims
> won't know that that they got raped if my friend didn't tell them. The fed
seems to
> do little about car loans.
>
> I used to work in a wholesales home mortgage company. We underwrote home
loans. We
> were the lender. The minority get hit hard with points from the brokers.
The
> processing department turned away loan application that had too much
points.
> Basically, we returned applications that clearly raped the applicants.
>
> In the underwriting department, the minority get excessive special
treatments. It
> was grossly reverse prejudice there, really sickening to me. If you were a
minority
> and your loan application denied, the application had to go through 2 more
> underwriting to try to approve the loan. If you were white, you only got 1
chance.
>
> Here are the pieces about mortgage that you should know.
>
> 1. Points are percents of your loan. 1 point = 1% of you loan.
>
> 2. Brokers charge you points or application fee for your application. They
send your
> loan application to lenders. They get to choose whom your lender be. In a
sense,
> they'll give you their best deal, not your best deal.
>
> 3. You pay for all fees.
>
> 4. Brokers will pay your fees if and only if they get special deals from
the lender.
> Those loans where you don't pay any fee will end up costing you more in
interest.
> Brokers get a fat commission from those deals.
>
> 5. The higher the interest rate on your loan, the higher the points the
lender give
> the brokers.
>
> 6. Brokers get points from you and your lender. Don't be fooled when they
say they
> do you a favor.
>
> 7. Your credit score qualify you for a certain rate. There used to be 2
tiers. The
> really high score qualify for the lowest rate. The rest get the lower
rate. Few
> people qualify for top tier rate.
>
> 8. Direct loan application to a lender get you decent rate, better than
average
> brokers. The best rate is from a dedicated broker, hard to come by.
>
> 9. The best deal you get is what your broker offer you, not the lender.
Your chance
> of getting a best deal is slim.
>
>
>
>
> Caroline wrote:
>
> > As far as targeting minorities: This comes up with home loans, too. I
don't
> > think it's entirely clear that minorities are paying higher rates
because of
> > their skin color or because they simply do have lower credit worthiness,
based
> > on income, past credit history, etc.
>