If you are looking for an auto loan then you must understand the difference between a buy rate and a contract rate. The contract rate is the rate that the dealer offers you, the buyer, and the buy rate is the rate that the lender submits to the dealer when you seek a loan through them. This slight difference between the two rates can equal big bucks when purchasing a car. Always try to get closer to the buy rate than the contract rate and if you have to, offer a flat fee on top of the buy rate. If it’s still not satisfactory make sure to shop around for loans from other places.
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