Dealer Reserve
Definition for united kingdom automotive professionals.
Dealer reserve is the markup a dealership adds to the buy rate (the interest rate offered by the lender) when arranging vehicle financing for a customer. It is one of the largest components of back-end gross profit and a critical F&I performance metric.
United Kingdom Context
In the united kingdom dealer market, dealer reserve operates within the context of FCA motor finance regulation and Consumer Rights Act 2015. Dealerships running Keyloop, Pinewood, Dragon2000 encounter dealer reserve in their daily workflow. DealerInt captures the decision layer around dealer reserve that your DMS wasn't designed to track.
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