A tool designed to estimate the markup a dealership adds to an auto loan’s interest rate allows consumers to understand the potential cost increase. For example, a quoted rate might be higher than what the lender initially offered, with the difference representing the dealership’s profit.
Transparency in loan pricing empowers borrowers to negotiate effectively and potentially secure better terms. Historically, this markup has been a less-discussed aspect of auto financing, making such tools vital for consumer protection and informed decision-making. Access to this information can lead to substantial savings over the life of a loan.
