Appreciation post: My local credit union saved me from a bad car loan last year

So last year I was looking at a used car from a dealer in Tampa. They ran my credit and came back with a loan offer at like 9% interest, which I thought was just how it was. My buddy told me to at least check with my credit union first, so I did it as a last step. The guy there, his name was Mark, looked at the dealer's paperwork and straight up said 'This is a bad deal for you.' He showed me how the dealer had added a bunch of extra fees and got me approved for 5.2% instead. I ended up saving over $3,000 across the life of the loan just from that one review. It made me realize how important it is to get a second opinion on any big money offer. Has anyone else had a bank or credit union catch something shady in a loan?

3 comments

3 Comments

blakeo571mo ago

I used to think dealers always had the best rates, but man that changed my mind lol.

haydensanchez1mo ago

My buddy just got quoted 9% at the dealership when his credit union offered 4.5. That's wild.

vera_roberts3d ago

Oh man, that Mark sounds like a real one. Here's something I don't see people talk about enough - those dealer fees aren't just random markups. In my experience, some dealers work with specific lenders who kick them a commission for pushing higher rates, known as a yield spread premium. Your credit union saved you from being the middleman on that little kickback. I've seen people get stuck with a 10% loan when their actual credit score could have gotten them half that, and the dealer just pocketed the difference. It's barely legal in some cases, so definitely take this with a grain of salt.