Overhaulin'

what kind of kickbacks does a dealer get for loans? They wouldn't even sell a car with cash in hand?

http://consumerist.com/5162727/jeep-incapable-of-selling-to-man-with-24000-in-cash

Public Comments

1. if they are also the finance company, then they would make all of the finance charges, but rest assured they get a nice kick back, evident in why they wouldn't sell you the car for cash...which is likely and a reason why they wouldn't sell it to you for cash...there are many dealers who will sell a car for cash, keep looking and avoid the vultures like that dealer...
2. Car salesmen make most if not all of their commission from the financing, not the sale. Cash sales are not attractive to them CAR BUYING TIP- If you have some money, buy a car you can afford, and finance it, then pay it off FAST with your cash..you'll get the best deal.
3. Ok from a dealers view here is the situation the customer built a jeep that the sale price was $24000 ok there would be tax on this and the tax inmost states is charged before the rebate so lets say it was a $4000 rebate. so tax would be on $28000 in my state the guy owes $1730 in tax plus what it would cost to transfer the tag from his old car which in my state is $38.35. Now they told him that he could get 05 in most dealer ships that means he loses the rebate so his total in my state would be $29768.35. It sounds to me like the jeep was never really $24000 to begin with he just got blinded buy the advertisement which is what its for. Most dealer get money from F&I for the overage they charge on an interest rate. The bank does 5% and they charge 7% on the 0% loans you don't get a whole lot of money. I thought this story was crazy for the fact that if you read the story its clear the customer has no idea as well as the dealer.