Fire Truck Lease Purchase – How Hidden Fees Can Affect Your Low Interest Rate
You just got a financing proposal with a rate that is 1/2% lower than the rest of your offers. Should you jump on it? Not so fast, says this Apparatus Budgeting Consultant. There are several parts of financing that are hidden if you don’t ask. Banks regularly use the low interest rate to lure customers into high cost transactions. Why do they do it? Banks know that most customers are inexperienced in the complex world of finance (and the whole finance world is getting more complex every day) and focus on 1 factor – the interest rate. Banks know that most customers only think that the interest rate is the only way banks earn their income. But aren’t we protected by laws? Yes, but those laws require banks to only disclose the rate in large print. The rest of all the hidden costs are buried in the fine print. Remember, banks helped write the banking laws. What are the hidden costs? There are several ways that banks quote a low interest rate and then collect more money from you.
