TSLA409.990-12.25%
GM73.100-1.76%
F13.030-0.37%
RIVN13.350-0.44%
CYD50.4400.44%
HMC25.210-0.97%
TM187.370-3.31%
CVNA66.030-1.14%
PAG159.750-2.43%
LAD264.8902.97%
AN181.940-2.21%
GPI317.1803.56%
ABG176.280-2.89%
SAH74.0600.1%
TSLA409.990-12.25%
GM73.100-1.76%
F13.030-0.37%
RIVN13.350-0.44%
CYD50.4400.44%
HMC25.210-0.97%
TM187.370-3.31%
CVNA66.030-1.14%
PAG159.750-2.43%
LAD264.8902.97%
AN181.940-2.21%
GPI317.1803.56%
ABG176.280-2.89%
SAH74.0600.1%
TSLA409.990-12.25%
GM73.100-1.76%
F13.030-0.37%
RIVN13.350-0.44%
CYD50.4400.44%
HMC25.210-0.97%
TM187.370-3.31%
CVNA66.030-1.14%
PAG159.750-2.43%
LAD264.8902.97%
AN181.940-2.21%
GPI317.1803.56%
ABG176.280-2.89%
SAH74.0600.1%

What Do Dealerships and Bank Conversions Have to Do With TikTok?

Recently, a video by TikTok user Molly Baxter shared a shady business practice perpetrated by a few F&I managers that received thousands of views. This should get your attention! Baxter’s video should tell you exactly why customers are walking into dealerships with checks made out for the exact amount; they’re fed up with the games. 

NAMADOn this week’s episode of F&I Today, host and president of Chernek Consulting, Becky Chernek discusses how TikTok videos and other social media platforms are holding F&I managers accountable. In Baxter’s video, she describes how some less than honest or uneducated F&I managers add points to a customer’s interest rate when converting the financing to the dealership. They will tell the customer that although they have already been pre-approved by their bank, the same deal can be made through dealership financing. For most buyers, dealership financing is the ultimate in convenience because it means one less trip to the bank to finalize the transaction. But in some cases, instead of matching or beating the interest rate, the dealership actually inflates it.

Is this a practice you advocate at your dealership? If so, the question you have to ask yourself is, does it make any sense? Why would you endorse converting the customer to your financing only to charge them more than their bank would?


Did you enjoy this episode of F&I Today with Becky Chernek? Please share your thoughts, comments, or questions regarding this topic with host Jim Fitzpatrick at jfitzpatrick@cbtnews.com.

Car Biz Today, the official resource of the retail automotive industry.

soundcloudBe sure to follow us on Facebook and Twitter to stay up to date or catch-up on all of our podcasts on demand.

While you’re here, don’t forget to subscribe to our email newsletter for all the latest auto industry news from CBT News.

More from F&I
Why 'decision fatigue' is killing your F&I gross

Why ‘decision fatigue’ is killing your F&I gross

- May 14, 2026
Buying a car demands more decisions than many customers expect. By the time they sign the purchase agreement, "decision fatigue" has set in. They have already negotiated a price, settled...
Getting more buyers across the finish line

Getting more buyers across the finish line

- May 13, 2026
Every car shopping journey has its highs and lows. On the positive side, it’s fun to do test drives and it’s exhilarating to drive off the lot in a new...
Finance Director Symphony Wills shares her success story

Finance Director shares path from rejection to BMW rooftop success

- May 12, 2026
Symphony Wills did not stumble into the car business. She chased it, fought rejection, and took on a two-hour commute to get her foot in the door and onto the...
Affordability squeeze reshapes F&I strategy as dealers rethink customer conversations

Affordability squeeze reshapes F&I strategy as dealers rethink customer conversations

- May 7, 2026
Rising costs are reshaping how customers approach car buying, and F&I leaders must adjust their strategies to keep pace. On the latest episode of F&I Today, Paul Brown, Vice President...
CBT News
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.