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What is a buy rate vs the rate the dealer quotes?

The buy rate is the actual interest rate the lender offers based on your credit profile. It is the rate the dealer receives from the bank. The dealer then marks it up and quotes you a higher rate. For example, if your buy rate is 4.5% and the dealer quotes you 6.5%, the dealer earns the 2% spread on every monthly payment for the life of the loan.

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