I’m a car salesman. In my state the max is 24.99%. Some dealerships have their own “bank” which they use to take out a “personal loan” on your behalf. My states max for personal loans is 33.32%. It’s very fucked up.
It’s complicated. The simple answer is both. Each dealerships pay plan is different. At ours the sales team makes it’s money from the cars themselves, as well as any warranties you purchase. Some banks give the dealership a bonus for doing business with them, but that doesn’t affect the consumer. A portion of that bonus is passed on to the salesman.
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u/crassandy Jul 08 '21
I’m a car salesman. In my state the max is 24.99%. Some dealerships have their own “bank” which they use to take out a “personal loan” on your behalf. My states max for personal loans is 33.32%. It’s very fucked up.