HOW CAR DEALERS MAKE
MONEY CHARGING YOU A
HIGHER INTEREST RATE

CAR DEALERSHIPS ARE LICENSED BY
THE BANKING INDUSTRY. THEY ARE
BANK AGENTS WHO PRINT AND EXECUTE
FINANCE CONTRACTS AND LEASE
AGREEMENTS.

CAR DEALERSHIPS ARE THE SAME AS
MORTGAGE BROKERS. THEY BUY THE
MONEY FROM THE BANK OR LEASING
COMPANY FOR ONE INTEREST RATE AND
SELLING THE MONEY FOR A HIGHER
INTEREST RATE WHICH GENERATES A
COMMISSION PAID DIRECTLY TO THE CAR DEALERSHIP.

THE MARKING UP OF THE INTEREST RATE
GENERATES A PROFIT FOR THE CAR
DEALERSHIP WHICH IS CALLED
“A RESERVE”.

A “RESERVE” CAN BE GENERATED
EITHER ON A FINANCE LOAN OR
A LEASE AGREEMENT.

THE AMOUNT OF MARK UP IS LITERALLY
ALL PROFIT FOR THE DEALER.
WHEN A DEALERSHIP MARKS UP A
LOAN OR LEASE 2 ½ % POINTS,
THE DIFFERENCE IN THE MONTHLY
PAYMENT IS LITERALLY SENT TO THE
DEALERSHIP AS PROFIT.

IF YOUR MONTHLY PAYMENT GOES
 UP $50.00 A MONTH FOR 60 MONTHS
THEN THE DEALERSHIP RECEIVES
A $3,000.00 PROFIT FROM THE BANK
OR LEASING COMPANY.

THAT IS AS SIMPLE AS I CAN
STATE THE FACTS.