If you ever going to buy a Car through Finance, stop what you doing, watch & read this 😮. Kindly share it with ALL your friends, families and enemies 🫣 DIC also known as Bank Kickback ‼️Explained in the most simplest form possible. When you buy a car through financing, the bank approves a wholesale interest rate (known as the "Buy Rate") based on your credit profile.   However, the Finance & Insurance (F&I) manager/person is usually allowed to mark up that interest rate before presenting the final offer to you. The bank and dealer then split the extra profit generated by this higher rate. This kickback, often called dealer reserve or finance commission, is paid directly to the dealer or F&I manager for INFLATING your rate 😮 Comparison Scenario: 72 Months Loan Both buyers put down a R0 deposit and finance the full price over 72 months (assuming simple, non-residual financing without balloon payments): Seller A (Fair Deal): R1,000,000 purchase price | 10.5% interest rate. Seller B (Marked-Up Deal): R980,000 purchase price | 14.5% interest rate. The Kickback Breakdown 1. Seller A (10.5% Base Rate): Interest Markup Kickback: R0 Outcome: Seller A passed along the exact bank rate. The customer saves R115,200 in total costs compared to Seller B, despite the sticker price being R20,000 higher upfront. 2. Seller B (14.5% Escalated Rate): Total Extra Interest Forced on Customer: R135,200 F&I / Dealer Kickback: Depending on the bank's commission split (dealers typically retain 60% to 80% of the interest spread profit), Seller B's dealership gets a kickback payout of roughly R30,000 to R50,000+ paid out by the bank upfront or over time. Outcome: Seller B seduced the buyer with a R20,000 discount on the sticker price, only to quietly claw back over R135,000 extra from the buyer in high finance charges. Key Takeaway for the Public, "A lower car price with a marked-up interest rate is almost always a trap." If it’s not mileage manipulated, undisclosed accident damage it’s the escalated interest rate they going to catch you on. “Ever heard we only selling this one through finance”? Well this could possibly be the case. Always ask the F&I manager directly: "What is the bank's approved base buy-rate for my credit score, and what rate are you quoting me?" Always negotiate the interest rate as aggressively as you negotiate the purchase price. Lastly please always go to the Bank Directly or straight after you have received your first finance approval. DO NOT BELIEVE THEIR WORDS OF FEAR that they use to scare you!! view4you.co.za