What is the average profit margin dealerships have on used car financing, and how do I secure outside funding to beat their rate?
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Fan-out diagram
The searches the AI actually ran for this prompt.
SEED QUERY
What is the average profit margin dealerships have on used car financing, and how do I secure outside funding to beat their rate?
2 real searches · 1 real-search pass
Badge and edge weight = share of passes that produced the query. Hover a query for its intent and routing format.
Query classes
Google's semantic query class for every sub-query: what kind of answer each search is after, simulated vs real.
Classifying 2 queries…
Searches and sources
ChatGPT2 real searches · gpt-6
dealer reserve auto financing markup typical 1-2 percentage points CFPB dealer compensation auto loans Google ↗
how to get preapproved used car loan credit union compare APR FTC auto financing dealer rate Google ↗
- Table 1: Summary Statistics of Markup and Dealer Reserve · economics.mit.edu
- Do Car Dealers Make Money on Financing? · nerdwallet.com
- loan. While the loan markups are discretionary, some lenders may impose caps to not only avoid potential class-action lawsuits, but also lower the consumer’s default and prepayment risk (Cohen 2012). Under pre-specified contracts between dealers and lenders, the revenue generated by markups may be split between them. The dealer’s share of revenue is commonly called “dealer reserve” or “dealer participation”. Using administrative data, Grunewald et al. 2023 show that dealers receive about 75 perc · files.consumerfinance.gov
- Auto Loan Rates for New & Used Cars · navyfederal.org
- Can I negotiate a car loan interest rate with the dealer? · consumerfinance.gov
- Financing or Leasing a Car · consumer.ftc.gov
Queries
2 queries · click a column to sort
| Query / type | Search | Intent | Query class | Routing format | Cluster | Freq ↓ | Weight |
|---|---|---|---|---|---|---|---|
dealer reserve auto financing markup typical 1-2 percentage points CFPB dealer compensation auto loans OBSERVED | Google ↗ AI Mode ↗ | — | — | — | — | 1x of 1 | |
how to get preapproved used car loan credit union compare APR FTC auto financing dealer rate OBSERVED | Google ↗ AI Mode ↗ | — | — | — | — | 1x of 1 |