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A majority (61 percent) of Americans who currently have auto loans do not know the interest rate they are paying on their loan, a new survey from Capital One Financial Corporation suggests. In a challenging economy, when saving money is particularly important, many consumers may be paying more than necessary and could benefit from a lower interest rate and a lower monthly loan payment by refinancing, the company notes.
Read the rest of the article here
Are you kidding me???
Where is Capital One getting the data for this survey?
I get beat up all the time over the interest rates. The majority of my customers want to know exactly what the rates are before any products are even mentioned.
Does this article suggest that if the customer falls into the sub-prime catagory, the F&I manager might not be practicing proper disclosure? By reading this article, it appears so 61% of the time - right?
Would Capital One be admitting that they are buying paper from automotive dealerships who are not properly disclosing what their customers are signing.
Having a 61% portfolio ratio of customers who have no idea what their interest rate is would scare me to death.
This creates visions of an F&I Manager putting one hand over the truith-in-lending disclosures while pointing toward the bottom of the r.i.s.c. leading the customer to just "sign right here".
Are we back to the "good 'ol days"?
Scary.
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1 comment:
Great subject actually as I had to come back and talk some more. I feel the whole story is never told when talking about the bad car people . We do our job and yes that job includes making money. The laws of discloser have changed a lot over the last 10yrs. I started in 1994 and the consumer was not as protected as today. Again Its the customer that has the task of making use of the finance discloser and not blam there lack of research on the bad f&i guy or gal.
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