You’ve just driven off in a $45,000 truck in August 2025, your 670 FICO score securing a loan through the dealership. But a question lingers: Did the dealership pick a lender to save you money or boost their profits? With average new car loan rates at 8.14% for prime borrowers (661–780 FICO), per U.S. News & World Report, near-prime consumers like you face a financing landscape where dealer gains often overshadow savings. Let’s explore how this happens and how you can take charge.
Dealerships don’t just sell trucks—they broker loans, earning “finance reserve” by marking up the lender’s base rate (buy rate). For example, a 12% buy rate might jump to 14.5% APR, with the dealership keeping the difference. Whitney LLP calls this a hidden tactic that inflates costs. They also push “protection packages” (warranties, GAP insurance) with 80% profit margins, bloating your loan and their earnings.
Your dealership offers three lenders. Bank of America provides an 8% buy rate for 60 months (10% APR after 2% markup) with a $2,500 package, making a $47,500 loan at $1,008.90 monthly. At 78 months, it’s 9.5% (11.5% APR), dropping to $866.88. Ally allows a $5,500 package ($50,500 loan): $1,099.39 at 60 months (11% APR) or $961.52 at 78 months (13% APR). Santander maximizes dealer profit: 12% buy rate (14.5% APR after 2.5% markup) with a $9,000 package ($54,000 loan), yielding $1,271.70 at 60 months or $1,068.66 at 78 months.
Which did they pick? Likely Santander’s 78-month loan, netting $12,465 ($5,265 finance reserve + $7,200 package profit). This isn’t the lowest payment—Bank of America’s 78-month option is $866.88, saving $201.78 monthly but earning only $5,903. Santander’s total cost is $83,355 ($29,355 interest), versus $67,617 ($20,117 interest) for Bank of America. As Kevin Hunter’s YouTube video notes, “When you finance through the dealer, they make what’s called a finance reserve.” The dealership prioritized profit over your savings.
Why? Dealerships focus on monthly payments, not APR or total cost, knowing consumers overlook the fine print. Your 670 FICO score qualifies for better rates—around 8.14% per U.S. News. TransUnion’s July 2025 report says 18 million borrowers could save $90/month by refinancing high-rate loans. NerdWallet estimates refinancing saves $3,626 over a loan.
Honest Car Payment’s strategy shifts the game: Tell the dealership upfront you’ll finance through them. Expecting finance reserve, they might cut the truck price to $43,000. Their second tip? Buy only the vehicle, no add-ons. Skip Santander’s $9,000 package, and your loan drops to $45,000 (or $43,000). Santander’s 78-month payment becomes ~$891.45 (or ~$850.97), but the dealership loses $7,200, cutting profit to ~$5,265.Refinance on day one with Honest Car Payment at 8.14% APR (market rate for 670 FICO). Honest Car Payment begins with a credit estimate so as not to impact your credit score using this quick link: https://honestcarpayment.com/getpreapproved/. For a $45,000 loan: 60 months yields ~$912.68 monthly ($9,761 interest); 72 months drops to ~$795.58 ($12,282 interest). For $43,000, payments are ~$871–$760. Compared to Santander’s $891.45 ($24,533 interest without add-ons), you save $12,251–$14,772 in interest and up to $95.87 monthly. If the truck price drops to $43,000, savings grow. Consumer Reports advises shopping around to avoid dealer traps.
The CFPB’s consumer guide urges using worksheets to compare terms and check for refundable add-ons, cancelable within 30–60 days. U.S. News confirms Santander’s 14.5% APR is excessive compared to the 8.14% market rate. Canceling Santander’s $9,000 package reduces the loan to $45,000, and Honest Car Payment’s 8.14% APR yields ~$795.58/month (72 months), saving $95.87/month versus Santander’s $891.45.The verdict? The dealership chose Santander for maximum profit, not your lowest payment. Fight back: Signal financing intent to lower the truck price, skip add-ons, and refinance with Honest Car Payment on day one for savings and peace of mind.