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FINANCE

Buy Rate

The actual interest rate the lender offers the dealer. The dealer marks it up.

// Why it matters

The buy rate is the rate the lender will give the dealer for your loan. The dealer can mark it up before quoting it to you (called "rate bumping") and keeps the spread as profit (finance reserve). If you walk in with outside financing pre-approved at 6%, the dealer's buy rate may actually be 5.5% — meaning they could match or beat your rate while still profiting. Always ask the dealer to "match my pre-approval rate" rather than accept their first offer.

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