Some lenders set limits as to how much a dealer can boost the price of a loan. Others do not. Some lenders get a cut of the increased interest rates. Others do not. Some lenders will have a maximum.
Some lenders have no limits.
So a dealer could bump it up six to eight points. And that can mean some serious profits for dealers and some serious losses for consumers. Credit union deals different Keep in mind that every arrangement between a lender and a dealer is a little different. The interest rates on the loans stay put. So whether a person applies directly from a credit union or through the dealer, the rate will remain the same.