Tariffs could raise car prices by over $1900; the right auto loan could put that money back in car buyers' pockets.
NEW YORK, Oct. 16, 2019 /PRNewswire/ -- According to the Center for Automotive Research, the White House's proposed tariffs could raise the price of American-built vehicles by $1900. Coincidentally, that's about the same amount that consumers could save by securing an auto loan outside the dealership.
Outside Financial today revealed that the average new auto loan arranged at a dealership contains $1,876 in undisclosed fees and markups. The Outside Financial Markup Index, which tracks markups, found that they have increased over 7% from September 2018.
"Consumers can't control trade policy or tariffs, but they can save a lot of money by arranging their car loans before going to the dealership," said Jon Friedland, Outside Financial's Chairman. "Most consumers do not realize they can bring their financing from outside the dealership, or that auto dealers can mark up the interest rates that financial institutions charge. Our mission is to bring transparency and competition to auto loans to benefit car buyers."
According to Outside Financial CEO Sonia Steinway, "Most car buyers focus on how much to pay for their cars, not how they pay for them. We empower car buyers to understand their financing options to get the right deal. Cars are too big and important a purchase, and too much money is at stake. Tariffs or no tariffs, auto finance needs to work a lot better for consumers."
"Consumers deserve the same transparency and choice in the financing transaction as they have when shopping for a car," Friedland stated.
About the Outside Financial Markup Index
The Outside Financial Markup Index analyzes public data from the Securities and Exchange Commission, the Federal Reserve Bank, the Consumer Financial Protection Bureau, the National Automobile Dealers Association, DealerStrong, and Auto Finance News, combined with interviews of automobile finance executives. The Index details consumer costs on auto loans arranged by dealerships for new car purchases. It is updated monthly and is subject to minor revisions for up to 4 months. The Index is available at https://www.outsidefinancial.com/auto-loan-markup-index.
About Outside Financial
Outside Financial brings education and choice to car buyers, arming them with the resources and tools they need to make financing easier, and matching pre-qualified and motivated buyers with the right lenders. For more information, visit www.OutsideFinancial.com.
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SOURCE Outside Financial
