Different dealers hold different levels of stock. A dealer holding higher stocks may be willing to part with a higher discount. Dealers also receive incentives for target achievements from the manufacturers in addition to the mark-up that they have on the sale price of the car. A dealer who is likely to receive a substantial incentive by selling a certain volume of cars in a given month may be willing to part with a much higher level of discount than another dealer who is unlikely to receive any incentive. Generally, the car financier will, as a next step, build the dealer discount into the pricing of the car loan.

Let's now take the example further –

Thus, carrying our hypothetical example further, if the base rate at which a financier is willing to do business is 11% per year and the manufacturers' subvention could bring down the borrowing rate further for you by 0.5% to around 10.5% per year, the dealer's discount could bring this rate down even further to 14.5% or 14% per year depending upon the amount of discount offered by the dealer!