Every rate on The Broker Black comes from one of two places: the dealership, which quotes the factory lender's standard and incentivized rates, and Rateous, which prices what the wider lending market would charge. Each car shows the rates it qualifies for at your credit range, and you choose.
Source one: the dealership and the factory lender.
A franchise dealership finances cars through the manufacturer's own finance company, called the captive lender: Mercedes-Benz Financial Services, Toyota Financial Services, Ford Credit, and so on. The dealership gives The Broker Black two kinds of captive rates.
- Captive standard rates: the lender's everyday rate sheet, set by credit tier and term, available on nearly every new car the brand sells. What are captive standard rates?
- Incentivized rates: special APR programs the manufacturer pays for, on specific models and terms, for a limited time. Some require giving up a rebate. Incentivized rates vs. rebates
A dealer may add a small markup to a captive rate, within the limit the lender allows. The rate on the car already includes it, so the number you see is the number the dealer quotes.
Source two: Rateous.
Not every car has a captive program, and not every buyer fits one. For every car, The Broker Black also prices a market rate from Rateous: what a bank or credit union would typically charge for the same loan. Here is how Rateous works.
- Built from real lender rate matrices. The same kind of grids banks and credit unions price from, by credit tier, the vehicle's age, the loan-to-value, and the term.
- Pinned to the Federal Reserve. Rateous rates follow the Fed's primary credit rate, so they move when the Fed moves.
- Real lender limits. When a mix of credit, term, and loan-to-value falls outside what lenders will write, Rateous says so instead of inventing a rate.
- Private. No credit pull and no application. Rateous prices from the credit range you choose, and nothing about you leaves The Broker Black.
How the rates show up on a car.
- The vehicle page lists every rate available for that car, term, and credit range, in the order the dealership sets.
- Switch between them and the payment, the total cost, and the out-the-door number all reprice.
- Your choice rides with your deal when you send it, so the dealership starts from the same number.
Every rate is an estimate at the credit range you choose, on approved credit. It is not an offer of credit; the lender sets the final rate after it reviews your application.
Quick answers.
Does seeing a rate pull my credit?
No. Every rate on The Broker Black is priced from the credit range you choose. Your credit is checked only when you apply, after you send your deal.
Why do some cars show more than one rate?
A car can qualify for a factory program, the factory lender's standard rate, and the Rateous market rate at the same time. The vehicle page shows each one so you can compare the payment and the total cost.
Is the rate I see the rate I get?
It is where the deal starts. The lender sets the final rate after it reviews your application, and it can differ if your credit or the loan details differ from what you entered.