Financing a truck ?

[fordy]

..............I'm considering buying a used dually to pull my 5'ver with , it seems that there is a part of this transaction whereby some banks will rebate back too the dealer a portion of the total interest paid by the purchaser on the loan ? Is this standard practice for ALL vehicle loans or how prevalent is this practice ? If I arrange my own financing does this have any effect on the transaction ? , Comments please ! , thanks , fordy

[johng]

From what I understand this is a quite common practice. My advise would be to find out what kind of interest rate your bank can give you before you go to the dealer. Then find out what the dealer can get you, sometimes they wil be able to beat your bank sometimes not. But, if you already know what your bank can do it will help you make the decision when the dealer tells you what thier interest rate is.

[Windy in Kansas]

I can't answer your question as I've never heard about this before.

Just wanted to mention that many insurance companies make loans for vehicles. Sold one some years back that was financed that way.

[Beeman]

Some banks would give an automatic kickback after the papers are signed no matter how much interest was paid.