Rate mark up paid to dealer is subject to chargeback on a pro-rated bases, example I said was simple math,
dealer paid $750 in reserve income/rate mark up split between dealer and lender
2 years from now, vehicle is traded at another dealer, that $750 was 75% of the total rate mark up for a 5 year simple interest note, dealer's reserve account will be debited a pro-rated charge back give or take (again simple math) $450.
Am am I an owner- no, am I in F&I dept -no, I am a GSM of a decent size new car dealership.
