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Finance < Borrowing rate        
Borrowing rate

From the above you would observe that you may get your loan at 9.5% per year even though the car finance firm has priced the loan at 11% per year. The difference between your borrowing rate and the financier's base rate is the benefit to you, the customer, created as a result of the car manufacturers' subventions, dealers' discounts and agent re-subventions.




   Finance
 
  The Base Rate   Agent re-subvention
  Car manufacturers' subvention Borrowing rate
  Dealer discount  
 
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