Dealer markup
Extra interest a car dealer adds to a finance rate to make a profit on the loan. It can cost you thousands over the term.
A dealer markup is when a car dealer arranges finance for you and adds a margin on top of the lender's rate. The lender might offer, say, 10% p.a., but the dealer quotes you 14% and keeps the difference.
It is legal, but it is often not made obvious. Over a full loan term that gap can add up to thousands of dollars in extra interest for the same car and the same lender.
The finance offered on the spot at a dealership can be convenient, but convenient is not always cheap. It pays to compare before you sign anything.
Fair Finance carries no dealer markup. We compare a panel of lenders and refer you to one likely to give a fair rate, and our referral fee comes from the lender, never from a markup on your rate. Get your fair rate.
See your repayments, then get a fair rate.
One application, one soft credit check, no obligation. We match you to the lender most likely to give you a fair go.