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Toyota dealers gave minorities higher interest rate loans. Not an uncommon practice.
- Thread starter Joe
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Angelus Errare
Banned
Not really shocking, this has been a thing since forever.
Captin Quacker
Member
Cant get much lower than 0% I got on my last car.
diablos991
Can’t stump the diablos
Not always the case.
Take all the rebates then just transfer the loan to a CU when it makes sense.
0% financing deals are usually fantastic dealer offered options as well.
Violence Jack
Member
This. Worked wonders for me on my last vehicle (Toyota Rav4) that I ended up paying off early last year.
Also, I wanted to avoid the salesmen and pitches, so I bought my car online. All I had to do was show up to the dealer when it was delivered, sign the paperwork, decline their bullshit "extras" and drove it off the lot.
Still, shady stuff all around. However, I'm not surprised at all.
Trojita
Rapid Response Threadmaker
Depends on the dealership. Rates have been pretty low for the last couple of years even at dealerships.
Mammoth Jones
Member
Yea, this isn't even news to most of us. I was taught to specifically go through my credit union for this exact reason.
Mofo's wanted like 17% on a 5 year first time car loan. Noped right the fuck outta that dealership laughing.
Mofo's wanted like 17% on a 5 year first time car loan. Noped right the fuck outta that dealership laughing.
AyaisMUsikWhore
Member
I didn't know this was a tactic and I worked at Honda finance for years. So this just... Ugh... Makes me so angry. I currently have my car financed through Nissan and I feel like I'm being bamboozled because of this.
I'm Hispanic and I got a pretty good deal on my car. Went with the dealership too - but I walked in with a pre-approved loan and told them either they make a better deal of it, or the bank will keep my interest money.
It also helped it was the salesperson's first car to sell too. Much more wiggle room for negotiation, haha
Holy shit might was well put it on a mastercard.
HomerSimpson-Man
Member
17%, what the hell?!
Iorv3th
Member
If you can get 0% sure but most people aren't going to qualify for it and it's usually only run for a small period of time.
I got mine 2 years ago and the interest rate I was offered was high enough that the rebates where going to cost more than the rate I got through the CU which was 2%.
"Magic Toyota: You'll Leave in a Puff of Smoke"
Glendemonium
Member
I knew someone who did that and was harassed by the dealership as she went to pick up her vehicle. They tried to charge her extra for "convenience fees" in which she called the online dealer and told them that all she had to do was pick up the car and leave. She almost had to call the police.
If I can help it I'd purchase online too and bring copies of all the paperwork with me since I'm a person of color in case they tried to pull that with me.
entremet
Member
This is a rather old practice that never went away.
GrizzleBoy
Banned
Institutionalized racism exists?
Never.
I refuse to believe.
Something something SJWs something something persecution complex something something black president etc.
Btw, this is eeeeeverywhere. Its not a Toyota thing.
Minorities are given higher interest rates or find it harder to get loans/mortages in general.
Never.
I refuse to believe.
Something something SJWs something something persecution complex something something black president etc.
Btw, this is eeeeeverywhere. Its not a Toyota thing.
Minorities are given higher interest rates or find it harder to get loans/mortages in general.
Liu Kang Baking A Pie
Member
This is how it's invisible to people who deny systemic racism. They get all the benefits without even knowing, but get so mad at others for getting theirs and tell them to pull themselves up by the bootstraps. When you're getting burned at every end, how is it even possible?
"You just see racism everywhere!" Because it is. Educate yourself.
"You just see racism everywhere!" Because it is. Educate yourself.
ryutaro's mama
Member
Let's just wait for all the facts, man.
ryutaro's mama
Member
Price of cars isn't the issue here. The amount that Toyota charges to finance the remaining balance (which tends to be higher for Black people) is the issue.
How would what you are saying fix that issue?
PeakPointMatrix
Member
But who's watching out for the white guys!?
To be fair it's not Toyota that's doing this. It's the creepy "finance manager" at the local dealership jacking up the rates on people he doesn't like.
It sounds like this is a discretionary add-on the dealers can do. More likely the dealers think they can get away with it with minorities who may or may not be financially literate.
ryutaro's mama
Member
Having a set price on cars (as that other posted called for) still doesn't fix this issue.
Bigboss242
Banned
Guess I am going to refinance since I am a dark skinned individual and am treated as such.
BoboBrazil
Member
How is this Toyota's fault? Dealer markup is a common practice regardless of color. It isn't the fault of Toyota if the customer agreed to a higher interest rate.
Septimus Prime
Member
The thing to do is to get pre-approved from your bank or credit union first, then have the dealer match or beat the interest rate. That way, if they refuse to do it, you can still just use the bank. Last time I purchased a car, I had the dealer match Chase Auto's 2.34% interest instead of offering its normal 3.92%.
Rebates and incentives are a whole other matter, and they need to be negotiated separately and before any financing discussion. Never negotiate for a car based on the price of its payments.
Trojita
Rapid Response Threadmaker
That's not a good defense. At the same credit scores, giving whites on average 4% but giving black people on average 5% isn't good. It shapes an overall view of either latent prejudice or purposeful racism.
Mattlikewhoa
Member
Word, fuck this mess for real! It's unfortuante that this isn't new.
BoboBrazil
Member
It isn't the bank that gives the higher rates though. Depending on credit the bank will let the dealer make markup on every deal. It's up to the finance guy to sell that rate to the customer and it's up to the customer to agree to it. Toyota as a company shouldn't be held liable since the bank doesn't know the color of the person when they get the credit app.
Bigboss242
Banned
how do you know banks aren't giving minorities worse offers as well?
AMxKaOtIcDeV
Member
As a mexican who just recently bought a vehicle at a toyota dealer..........welp, that explains it.
Mammoth Jones
Member
I've seen dealers try and markup the price of a vehicle if you use your own financing.
Car is 20,000$ if you finance through us.
Same car is 22,500$ if you have your own financing.
You're still getting the worst deal regardless. There's no question you may be given poor credit through your bank, but I'd still take it over a dealer.
SliceSabre
Banned
Whenever I hear: "Why make it about race?"
Cause shit like this still goes on. Sad.
Cause shit like this still goes on. Sad.
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