Toyota Dealership Sketchy Used Financing?

Hi all. I will be looking to finance a used tundra. The last Toyota I bought at a Canadian dealership was used and the finance guy seemed not on the up and up on financing. Anyway the financing he got me was high and I told him so. I was able to refinance at my bank for 3% less. Is he selling my loan for a kickback or percentage points. I'm in Canada FYI, but still interested in US experiences as well. What can these people get away with?

 

Short answer yes. Some get kickbacks others get paid on the points they can stick you with over your risk profile.

 

Stealerships financing sucks. Have your own ready before negotiating price and don't let them know you have it, may get a better deal if they think you'll use their financing.

 

I think I did get a better price but I didn't know about the financing scam. They should have to disclose what they're making on financing. Is that the norm at Toyota dealerships?

 

I 'sort of' use dealership financing when I need to.

Last two vehicles we've bought, we used dealership financing literally for one reason only - to get the deal done ASAP and get out of the dealership. LOL

Within a week or two afterwards, we turned right around and refinanced through (in my case, Navy Federal CU) for like 3% less.

 

100% agree with having your financing all sorted before showing up on the lot. My credit union was 1.49% versus Toyota's 5%.

 

100% always have your financing lined up before you go to the dealership.

 

I always line up our own financing, and id they beat it great. Don’t divulge this till the end when you have an agreement on price. Also, I think there are more finance shenanigans with used vehicles.

 

I make them compete my credit union rate & make them beat it by at least .75%. If they can't beat it by that I go with my credit union. My last two Toyotas purchased Toyota Financial actually beat the credit union by more than that for the same term. So I opted for Toyota Financial then. I do have outstanding credit to negotiate that as well.

 

I read that the dealer selling your loan for points is illegal in Canada but legal in the States. But, there's probably ways around that.

 

Dealer finance guys are not your friend or your buddy. No matter how they try to be chummy with you.
They usually do very well for themselves by taking advantage of people and the process.

As mentioned have competitive financing prearranged and use as bargaining tool.

 

I did the same thing. Just jumped on a deal and got out of the dealership ASAP. Plus l was 3hrs away from home. Sorted out the financing a couple weeks later.