How Does A "Dealer Reserve" Work?

The dealer reserve is a kickback auto dealers receive for selling customers loans with higher interest rates than that for which the customer qualifies. Dealers justify markups as compensation for time spent finding financing, despite the fact that the average car buyer spends about 30 minutes with the finance department, which stands to gain over $1,000 per hour for their service.

Find out how the dealer reserve works by following the steps below: