^ Never heard of that one (dealer reserve, marking up your APR). I don't see how that's possible with the truth in lending laws that are out there. When I borrowed the money for my car I had to sign a document that listed out the purchase price, all financing fees, the actual APR, and the total amount I would end up paying across the life of the loan. It seems hard to believe that a dealer could mark up your APR from 6% to 8% while you're still signing a document that says 6%. Am I misunderstanding that statement maybe? I knew dealers could apply a "finance charge/fee," but I've only ever seen that listed as an actual dollar value.

In any event, you are almost always better off arranging your own financing. I've used my credit union for three vehicles in a row now and gotten a great rate (4.74%) each time, plus I've got the flexibility to change the payment amount, reschedule the monthly due date if needed, etc. Try that with dealer supplied financing.