SESKStuff Everyone Should Know
SESK: Stuff Everyone Should Know · sesk.info/teen-car-dealer-rate

Interest rates on dealer-arranged car loans are generally what?

Generally higher, because of a dealer markup.

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  1. Lower
  2. Always zero
  3. Higher ✔

Why: The dealer adds a markup to the lender's rate. Bank or credit union financing tends to be cheaper.

Huh, didn't know that: You can apply directly with a bank or credit union, even if you don't bank there.

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References

Answer: Higher. The dealer adds a markup to the lender's rate. Bank or credit union financing tends to be cheaper.

  1. CFPB: Dealer-arranged vs bank financing www.consumerfinance.gov/ask-cfpb/what-is-the-difference-between-dealer-arranged-and-bank-financing-en-759
    Interest rates through a dealer are generally higher
    Checked 2026-10-10.

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