markup on financing packagesOn the greatest sources of income to dealerships is the markup on financing packages or loans that they provide to their customers. Basically, dealers first buy credit at a wholesale price and then sell it to their customers at the retail price. They add 1% or 2% markup on the moneys financed. The law does not require the dealer to disclose this information to the consumer. They simply charge consumers for a service that has been provided making significant profits.

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