Today, Explained cover image

How car ownership got so expensive

Today, Explained

Auto lenders and dealers scamming practices

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Auto lenders and dealers engage in scamming practices by adding hidden fees, increasing prices for users with poor credit, giving loans with high interest rates to people who can't sustain them, and offering financing for expensive cars to individuals with low income and poor credit to profit from defaults. The practice exploits individuals with poor credit histories who are misled into high-interest loans for expensive vehicles, preventing them from obtaining reasonable loans at affordable rates.

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