Don't Let Auto Dealer Markups Take You for a Ride
7/31/2013, 3 p.m.
Now, thanks to the CFPB’s watchdog role if or when financial violations occur, dealers are assured that swift enforcement will be taken.
Further, it just makes sense for consumers to shop for the best auto lending rates, just as consumers are encouraged to shop for the best mortgage rate for a home. Most importantly, consumers should be keenly aware that the convenience of buying and financing a vehicle from a dealer will likely be more costly than if financing and sales were handled separately.
Shopping for financing first enables consumers to learn their credit scores, current competitive rates on loans and how much of a loan is affordable in comparison to their other expenses and debts. Deciding up front the household comfort zone for new debt and how long it should last, would lead to loans that are better managed and affordable.
CRL salutes the CFPB for exercising their power to ensure that the marketplace is fair for all consumers. Just as the historic Brown v. Board of Education decision held that in education, separate was inherently unequal, the same can be said of lending: let it be equal.
Charlene Crowell is a communications manager with the Center for Responsible Lending. She can be reached at email@example.com.