car loan flex commission Page 20

“Flex commission” was the old dealership party trick: bump your interest rate above the lender’s base, keep the difference as commission.

ASIC banned it for consumer car loans from 1 November 2018 in Australia, so dealers can’t goose your rate to line their pockets.

Today the lender sets the rate (usually risk-based), and dealer payments are fixed or capped and not tied to cranking up your percentage.

Translation: haggle on the car, not the interest, and always grab a comparison quote from your bank or credit union before signing anything with confetti on it.