Car Dealerships and the Incentive for Low Interest Rates


Recent statements from the Consumer Financial Protection Bureau have left car buyers worried that their local dealership will intentionally set them up with a high interest rate.

In a recent commentary for Automotive News, Jim Henry explained why that is simply not the case. Auto dealers are actually more motivated to get their customers a lower interest rate than, for example, a mortgage broker because a mortgage broker will only make money on the mortgage. When it comes to an auto loan, a dealership is set to make money, even if they take a lower interest rate, because the dealership will make money on the service of the car.

Besides this argument, there is great availability of low-interest auto loans to consumers, even those with bad credit or no established credit history. Car buyers can negotiate lower monthly payments, lower interest rates, longer loan terms, or whatever they need for their particular credit and financial situation. All it takes is a car buyer sitting down with a dealership’s finance department and exploring their options.

Obtaining an auto loan with bad credit or without a credit history can be difficult, but it is achievable. Contact a sales person at Bayside Chrysler Jeep Dodge and find a time to come in so we can work with you to find the proper loan. We’ll get you driving away in the new or pre-owned vehicle best suited for your lifestyle. Be sure to like us on Facebook and to follow us on Twitter to see our monthly specials.

Image courtesy of artemisphoto /

The Cars That Sub-Prime Borrowers Are Buying

Dodge AvengersQuick question: what cars are sub-prime borrowers buying? The answer may be surprising. wanted to know this very answer. Rather than following my example and randomly asking the internet, they put together data between October 2012 and March 2013. What the conclusion they found in that window of time was that the people who make their auto purchase as sub-prime borrowers are buying completely different cars than those in the top-selling slots.

The top three selling midsized sedans in the US is the Toyota Camry, Honda Accord, and the Nissan Altima. These three didn’t even break the top ten for sub-prime. So what was on the list then?

Topping it was the Dodge Avenger followed by the Kia Forte and Kia Optima in second and third respectfully. It’s clear from looking at the full list of the top ten that people suffering from credit issues and other financial complications are looking for small or midsized sedans. At least in the new category they are.

Used tells a different story. The top seller in that time period was the Ram 1500. The Dodge Charger came in at the fourth slot. A wide range of vehicles are on the list, but trucks were more numerous than on the new list.

Are you having credit issues and are looking to purchase a new or used vehicle, such as the Avenger or the 1500? Contact us at Bayside Chrysler Jeep Dodge. We love to say yes! We’ll work with you to put you in the car best suited for you. Don’t forget to like and follow us on Facebook as well as Twitter.

What’s Keeping Used Vehicle Sales so High?


We’ve written about in the past about how the used market has seen a major uptick in late of sales. A major factor for the New York area is because of the impact of Superstorm Sandy. When the hurricane came through and wrecked havoc on the city, it hurt many car owners who found themselves the morning after without their vehicle and were forced back into the market. Nationally, there are even more factors at play. For example, one is that people have reached the end of their vehicles life and no amount of repair and wishing is going to keep it on the road. It’s time for most drivers to get into the dealerships.

Tom Webb is an economist at Manheim and he took at look at used retail sales. He found that in the first quarter of 2013, used-vehicle sales were 12 percent higher year-over-year while most other industries are slowing down. He believes that a big reason is because how available financing has been for vehicles.

“On any given day,” Webb says, “there are literally hundreds of thousands of vehicles with owners who would like to trade up to get something a little bit better if they could do so with an affordable monthly payment. Given the availability of retail financing, a natural changeover of those vehicles over time will occur.”

What I find interesting is that numerous blogs and other speakers have, at lengths, informed me that the recent surge of the market has been due to the age of the vehicle, as I mentioned earlier. While certainly a part of it, Webb sees things differently. He believes that people coming in wanting to trade-up being the biggest reason why the used-vehicle sales are staying as high as they are.

Other markets are in flux at the moment because of the recent rise in payroll taxes and fluctuations in gas prices. Yet while these spending segments dip and slump, used-vehicles are seemingly impervious. Webb even says so himself, “To a certain extent, the used-vehicle market has been impervious to these factors in terms of retail sales activity.

The point of Webb’s study was to show that used-vehicle sales will hit an all-time high before 2015. What I took away was that he identified some great reasons why vehicle sales have maintained a positive upswing in the face of major economic issues impacting consumers. Financing has been made much easier to obtain and it definitely looks to be helping.

If you’re in the market for a used or new vehicle and need to look into financing, that’s where Bayside Chrysler Jeep Dodge comes in. We offer the best customer service to work with you to help you get into the car you need. We love to say yes, so contact us today and let’s get started in making sure you drive away satisfied with your purchase. Make sure you like us on Facebook and follow us on Twitter for more financial tips and monthly service offers.

Image courtesy of nongpimmy /