Established Contributor
Posts: 684
Registered: ‎05-02-2008
Re: I Can Help, I Run A Car Dealership.

spengbab wrote:

I've read in a car buying book that when a dealer gets an offer back from banks, that usually they will add a little bit to the APR that was approved. E.g., if a dealer sent apps and got back an APR of 4.7%, they will say that I'm approved for an APR of 5.7% (or any amount higher than the approved APR) ... is that true?

Yes it is.  Depending on the term of the loan and the lender, the dealer can add as much as 2.5 points to a loan.

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