Dealer Reserve
Dealer reserve is the profit a dealership earns by marking up the interest rate on a customer's auto loan above the rate offered by the lender (the buy rate).
Dealer reserve (also called finance reserve or dealer participation) is the profit a dealership earns from marking up a customer's interest rate above the rate a lender offers to the dealership. For example, if a bank offers to finance a deal at 5% (the "buy rate"), and the F&I manager presents the customer with a 7% rate, the 2% difference over the life of the loan is paid to the dealership as dealer reserve. Reserve is a significant component of back-end gross for dealerships with strong F&I penetration. Consumer finance regulations have increased scrutiny of dealer reserve practices in recent years.
Category: Finance
Override exposure calculator
How much gross could untracked overrides be costing your store?
Drag the slider to match your average retail units per month. DealerInt customers typically see override leakage drop 30–50% in the first 90 days once every decision requires a reason and shows up on the GM's dashboard.
Est. monthly leakage
$16,800
Est. annual leakage
$201,600
Based on observed override patterns across DealerInt stores. Actual results vary; this is meant to make the invisible cost visible.
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