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FINANCE
Finance Reserve
Profit the dealer makes on your loan. Eliminate by bringing your own financing.
// Why it matters
When you finance through the dealer, the dealer earns a commission ("finance reserve") from the lender — typically 1-3% of the loan amount, capped at $1,500-$2,000 by most lenders. The dealer adds this margin to the lender's buy rate before quoting your APR. Walking in pre-approved by your bank, credit union, or Capital One Auto Navigator eliminates this margin entirely.
// Related terms
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