Santa Claus is coming to Car Loans
NEW YORK, Dec. 23, 2019 /PRNewswire/ -- Outside Financial revealed today that the average new auto loan arranged at a car dealership contains $1,850 in undisclosed fees and markups. The Outside Financial Markup Index, which tracks these markups, found that they have increased by 5% over October 2018.
"A Santa Secret is that you could save $1,000 by arranging your auto loan before you go to the dealership," said Jon Friedland, Chair of Outside Financial. "When you arrange your car loan in the car dealership's back office, standard practice is to mark up your interest rate. That can cost you $1,000 or more. Keep that in your own stocking by arranging your loan with a local credit union or bank."
Sonia Steinway, CEO of Outside Financial, added, "Most of us want to save as much money as we can around the holiday season. It's also a great time of year to buy a car because many dealerships want to maximize their sales to make their month- and year-end quotas. But it doesn't help to save a few hundred dollars on your car's purchase price if you over-spend by thousands on your financing. At Outside Financial, we believe car buyers should understand their options so they can make the right choices for themselves."
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 empowers car buyers to understand their financing options and connect to the right lender, outside the dealership. The company partners with financial institutions that share their consumer-first values. For more information, visit www.OutsideFinancial.com.
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SOURCE Outside Financial, LLC
