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How is it ok for dealerships to charge more from customer to customer?
"Is it legal for a dealer to charge if I have my own financing? A friend of mine got an incredible deal on a car at a local car dealer using their financing but the interest rate was not all that great. I qualified for a better interest rate through my bank so I went to the dealer and asked for the same deal, minus financing. They said because I have my own financing the price would be higher."
Johnny Puckett · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“Dealerships can charge whoever whatever they want. There’s nothing that states it as an illegal practice.
If you don’t like how dealerships conduct their business, find someone that will treat you the way that you want to be treated as a customer and buy from them instead. (This is generally good life advice, as well.)
It may seem like your friend got a good deal on a car financing through the dealer, but they are likely paying more in hidden financing fees than they would save on the asking price for their
new car
. It’s a bait and switch.View full answer
- Gregory R.
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