Avoiding Credit Hassles at the Dealership

Published: 06/12/2001 Updated: 04/30/2009 - by Philip Reed, Senior Consumer Advice Editor, Edmunds.com

You fill out a credit application at a car dealership. You're led in to see the finance manager who happily announces, "Great news! I can finance you at 9.9 percent."

You're tempted to say, "Sounds good. Let's do it." But then doubt sets in. Isn't the prime rate 6.5 percent now? How do I know this is the best rate I can get?

So instead of readily agreeing, you say, "That rate sounds a bit high."

"We base our interest rates on your credit score," he tells you.

Naturally, you ask, "So what was my credit score?"

Now the ... Back to article

By jackpot49
on 01/08/11
12:42 PM PST

Be careful when using blank checks issued by banks. I thought I had paid for a car and found out later the finance manager applied for a loan on my behalf and didn't tell me. They doubled my interest rate and told the investigator I needed financing when I came on the lot and that I was just trying to get out of a car loan. Have the bank pay the dealership directly. Dan.

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