Kendall Auto Group is a dealership chain, not a financing or information program
Kendall Auto Group operates car dealerships across multiple states, primarily in the Midwest and Southeast. They sell new and used vehicles and offer financing through partner lenders. If you arrived here looking for information about buying a car, understanding how dealership financing works, or learning what to watch for when working with a large dealership chain, this guide explains what Kendall is and what happens when you buy through them.
This is not a guide to a government program, subsidy, or financial aid. Kendall Auto Group is a private business. Understanding how they operate and what your responsibilities are as a buyer will help you make an informed decision about whether to shop there.
Key Takeaways
- Kendall Auto Group is a privately owned dealership chain that sells vehicles and arranges financing through third-party lenders, not a government or nonprofit program.
- When you finance through a dealership, the dealer arranges the loan but does not hold it — a bank or credit union becomes your lender, and you owe them, not the dealer.
- Dealership financing often includes add-ons like extended warranties, gap insurance, and service plans that increase your total cost and are negotiable.
- Your credit score and income determine what interest rate and loan terms you receive, and shopping for rates before you visit the dealership gives you leverage in negotiations.
- Reading the loan contract carefully before signing protects you from unexpected terms, and you have the right to walk away at any point before you sign.
How dealership financing actually works
When you buy a car at Kendall Auto Group or any dealership and finance it, the dealership does not lend you the money. Instead, a sales representative helps you fill out a credit process, and that process goes to one or more lenders — usually banks, credit unions, or finance companies. One of those lenders approves or denies you and sets your interest rate and loan term.
The dealership then sells your loan to that lender (or keeps it if they have their own finance arm). You sign a contract with the lender, not with Kendall. Your monthly payments go to the lender. If you miss payments or default, the lender — not Kendall — can repossess the vehicle. This matters because it means the dealership's job ends when you drive off the lot, but your obligation to the lender continues for the full loan term, usually three to seven years.
The dealership makes money on the sale of the vehicle and on the difference between what the lender approves and what interest rate they actually give you. This is called the "dealer reserve" or "spread," and it is one reason dealerships push financing through them rather than encouraging you to bring your own loan.
What to know about interest rates and loan terms
Your interest rate depends primarily on your credit score, income, and the size of your down payment. A higher credit score usually means a lower rate. Kendall cannot set your rate — the lender does — but the dealership can shop your process to multiple lenders to find one willing to approve you. This is useful if your credit is not perfect, but it also means the dealership has incentive to present you in the best light to lenders, which may not always align with full transparency.
Before you visit a dealership, check your credit score through a free service like AnnualCreditReport.com or through your bank. Know what rate you might expect based on your score. Then, visit your own bank or credit union and ask what rate they would offer you for an auto loan. Having a pre-approved rate in hand gives you a concrete number to compare against what the dealership offers. If the dealership's rate is higher, you can either negotiate or decline and use your own lender.
Loan terms typically range from 36 to 84 months. A longer term means a lower monthly payment but more interest paid overall. A shorter term costs more per month but saves you money in the long run. The dealership will present terms that fit your budget, but that does not mean they are the best choice for your finances.
Add-ons and extras that increase your cost
After the dealership and lender agree on your loan, a finance manager will present you with optional add-ons: extended warranties, gap insurance, service plans, paint protection, fabric protection, and others. These are not required, but dealerships present them as though they are standard, and many buyers sign for them without fully understanding what they cost or what they cover.
Gap insurance is worth understanding. If you total your car and owe more on the loan than the car is worth, gap insurance covers the difference. If you are putting down less than 20 percent, gap insurance has real value. Extended warranties cover repairs after the manufacturer's warranty ends, but they are expensive and often duplicate coverage you already have through your credit card or insurance. Service plans lock in maintenance costs, but they are usually more expensive than paying for service as you go.
Every add-on increases your loan amount and your monthly payment. Before you sign, ask the finance manager to show you the total cost of each item and remove anything you do not understand or do not want. You have the right to decline all of them.
What to do before you visit the dealership
Preparation reduces the chance that you will overpay or sign for something you do not want. Start by checking your credit report at AnnualCreditReport.com — this is the only free, federally authorized site. Look for errors and dispute them if you find any. Errors can lower your score and raise your interest rate.
Next, decide how much you can afford to spend per month and how much you can put down. Use an online calculator to see what loan amount and term match your budget. Then, visit your bank or credit union and ask about their auto loan rates and terms. Write down the rate, term, and any fees they mention.
Research the specific vehicle you want — not just the model, but the year, mileage, and condition. Use Kelley Blue Book or NADA Guides to find the fair market value for that exact vehicle. This tells you whether the dealership's asking price is reasonable. Finally, decide in advance what your maximum offer is and stick to it. Dealerships use time pressure and emotion to push you toward higher prices.
Reading and understanding the contract before you sign
The loan contract is a legal document that binds you to repay the lender. Before you sign, read every page. The contract will include the vehicle identification number (VIN), the purchase price, your down payment, the loan amount, the interest rate, the monthly payment, the number of payments, the term in months, and the total amount you will pay over the life of the loan.
Check that all numbers match what you agreed to. Verify that add-ons you declined are not listed. Look for any blank lines — never sign a contract with blanks. If something does not match your understanding, ask the finance manager to explain it and correct it before you sign. You have the right to take the contract home and review it with someone you trust, or to walk away entirely.
Once you sign, the contract is binding. You are responsible for the full loan amount plus interest, even if you later regret the purchase or discover a problem with the vehicle. Some dealerships offer a short "cooling-off period" where you can return the vehicle, but this is not required by law in most states, so do not assume it exists.
What happens if you have problems after purchase
If the vehicle has a mechanical problem, your recourse depends on whether it is still under warranty. If it is, the manufacturer or dealership warranty covers repairs. If it is not, you pay for repairs yourself unless you purchased an extended warranty. Keep all service records and receipts.
If you believe the vehicle was sold to you with a hidden defect or fraud, contact your state's attorney general office or consumer protection agency. Some states have "lemon laws" that require dealers to repair or replace vehicles with serious defects, but the rules vary by state and by how long you have owned the car.
If you want to pay off your loan early, you can. Contact your lender and ask about the payoff amount. Paying early saves you interest, but some lenders charge a prepayment penalty — check your contract to see if yours does. If you want to sell the vehicle before the loan is paid off, you will need to pay the lender the full remaining balance from the sale proceeds.
Frequently Asked Questions
Can I negotiate the price at Kendall Auto Group?
Yes. The asking price is a starting point, not a final price. Research the fair market value of the specific vehicle using Kelley Blue Book or NADA Guides, then make an offer below that. The dealership will counter. Negotiate until you reach a price you are comfortable with or walk away. Do not let the dealership rush you.
What is the difference between buying from Kendall and buying from a private seller?
Dealerships offer some consumer protections — they must disclose known defects in most states, and they often provide a short warranty. Private sellers typically sell "as-is" with no warranty. Dealerships also handle financing, which is convenient but often more expensive than financing through your own bank. The trade-off is convenience versus cost.
What if I cannot afford the monthly payment after I buy the car?
Contact your lender when ready. Do not skip payments. Some lenders offer loan modification or forbearance, which temporarily reduces or pauses your payment. If you cannot catch up, the lender can repossess the vehicle. If you owe more than the car is worth, you may still owe the difference even after repossession.
Do I have to use Kendall's financing, or can I bring my own loan?
You can bring your own loan from your bank or credit union. The dealership will accept a cashier's check or direct payment from your lender. Some dealerships offer incentives to finance through them, so compare the total cost of both options before deciding. Financing through your own lender gives you more control and often a better rate.
How long does the buying process take at a dealership?
Plan for three to four hours. This includes test drive, negotiation, credit process, lender approval, contract review, and paperwork. If the lender needs additional information or verification, approval can take longer. Do not rush through the contract review to speed up the process — take the time you need to understand what you are signing.