Credit Score Vs. APR Rate
HOW DOES YOUR CREDIT SCORE RAISE YOUR INTEREST RATE?
Whether you have EXCELLENT Credit, GREAT Credit, GOOD Credit, FAIR Credit, POOR Credit or REALLY BAD Credit…
Everyone has one thing in common “THE FINANCE MANAGER“.
THE FINANCE MANAGER IS CLEARLY THE MOST DANGEROUS PERSON IN THE DEALERSHIP…
The Finance Manager can cost you Hundreds of Dollars, even Thousands of Dollars MORE!
How is that possible even if You have EXCELLENT Credit?
Finance Managers are paid commission on the overall profit they bring into the dealership. Dealerships are Licensed Brokers for Banks and Leasing Companies and as such are PAID COMMISSION on the Interest Charged Customers OVER the “Buy Rate”. What that means exactly is if the Finance “Buy Rate” (the rate charged to the Dealership by the bank) is 2.00% APR and the Dealership signs you to a Finance Contract for 4.99% APR then the Dealerships EARNS the extra Interest Charged over 2.00% APR which in this case is 2.99% APR.
This Literally means that the Dealership KEEPS the of 2.99% APR Interest on the Loan as PURE PROFIT…. Exactly how much money are we talking about here? Let us say you are Financing $25,000 for 60 Months (5 years)… The Dealership receives a check in the amount of approximately $3,000 this is called “The Finance Reserve”. Please look at the amount of Interest on your contract, $3,000 goes to the Dealership the rest to the Bank approximately $2,000… In this case the Dealership actually made more money on the Financing than the Bank did!
Even with EXCELLENT credit I have seen people get “BUMPED” $20 per month on a Lease or Finance. If the Finance Manager sees one small derogatory piece of credit on your credit bureau, he or she JUMPS ON IT and raises the Interest Rate justifying the increase by the one small piece of derogatory credit, even if you only co-signed that loan!
PCN PREVENTS OVERCHARGING BY THE FINANCE MANAGER
We understand EXACTLY how the Finance Office of a Dealership works and are equipped to COUNTER any “BUMP” in Interest Rate. We know why Interest Rates get Increased by the Bank or Leasing Company and can PREVENT you from being OVERCHARGED! The average Consumer is NOT equipped to respond to questions about derogatory credit and HOW IT WOULD AFFECT the INTEREST RATE. We know EXACTLY what kind of credit score will change your Interest Rate and what that Rate will be! The “TRICK” is to know what credit score will equate to what Interest Rate for each Manufacturer, Bank and Leasing… EVERY FINANCE MANAGER has this information at his finger tips…. and so do we!
Do NOT misunderstand if your credit score is lower than average, than your interest rate will be slightly higher… What PCN is talking about is keeping the “BUY RATE” in line with the “SELL RATE”… The Dealership can “MARK-UP” the money 300 basis points or a FULL 3% APR. We know how to keep you from paying too high of an Interest Rate…