Buy Rate

The Buy Rate is quoted by the car dealer (see Chapter Two: Visit).  The Buy-Rate

is the car-dealer's cost for the financing. In the example below the Buy Rate is 7.2%

and the Interest Rate is 8.9%. It cost the car dealer 7.2% and they are selling the

financing to the customer at 8.9% which yields 1.7% in profit. The car dealer then

receives a percentage of this profit.

Illustration: