A rip-off that has been around for years was exposed again recently in a lawsuit against Ford Motor Company. When buying a car at a dealership, the dealer can mark up the rate significantly. People think the dealer has gone out and shopped the loan. But, in reality the dealer may secure a rate of 5 percent and jack it up to 14 percent when charging you. This practice came to light when it was discovered that car companies have been charging black customers much higher rates than white customers for some reason. Several lawsuits were filed against the companies, and Ford was one of the few automakers that fought the case in court. Well, a judge wasn’t having it and Ford has now had to pay up just like GM, Nissan and Chrysler. What you need to remember is that car makers make their money in the “F & I” department or “finance and interest” department. They don’t make much on the sale of the car. So, they are going to charge more for the financing. That’s why you have to do your homework. Get rates from a bank or credit union ahead of time. Then, go into the dealership and try to negotiate the interest rate on the loan. In that case, you are in the driver’s seat and you may get a better deal. Just make sure you do the work beforehand and know what you can get. Keep in mind that many auto insurers now make loans. So, get rates from you auto insurer and use that to your advantage, as well.