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Dealer Incentivized to Finance at Higher Rate?
Just purchased a vehicle, and signed my contract at 6%. I just refinanced 3 days later at 2.75% through my credit union.
This leads to me to wonder. Are dealerships incentivized to put buyers in a higher rate, even if the buyer would typically qualify for a better rate?
If dealership are compensated for putting buyers in higher rates, are dealerships then dis-incentivized when buyers turn around and refinance their loan a week later?
I’m simply curious, I have no idea the true financial relationship that dealerships have with the banks.
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